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Upcoming FOMC Meeting: Watch As All The Bond Rats Jump Ship
Dian L. Chu: Short-Term Market Flipping: Markets are just hilarious these days, there is no meaningful investments in the era of High Frequency Trading, Spoofing Algos, Pump & Dump IPO Schemes and ZIRP free money to borrow at the drop of a hat.
Patterns, Patterns & Recurring Patterns
Again after an excellent employment report where bonds are crushed, how many times has that happened in the last year? You would think that after a while bond bulls would just get out of the way before the damn report, but based upon the price action after the reports, there are a lot of slow learners in the bond market.
Bonds & Stocks are essentially the same trade these days
And just like the selloff after robust employment numbers, the following week the bulls buy the dip, just like the equity bulls buy the dip after selloffs. It is really one in the same trade in the era of ZIRP as both are long oriented markets. Likewise, Bond Shorts are slow learners because this pattern keeps happening over and over, and the shorts keep getting squeezed like today based upon the price action. What were you looking for a strong retail sales report?
Retail Sales is a flawed, archaic report which made sense 20 years ago
We haven`t had a strong retail sales report since the internet was invented, it is an archaic report, consumers don`t shop that way anymore, and the data set is flawed. You should never expect a strong retail sales report when even the US Post Office now delivers internet-ordered packages on Sundays! If you happen to get a better than average Retail Sales Report that is just gravy, but traders should never position themselves positively in front of this report, it has missed like 80% of the time.
The Sky Really is Blue, and not Green
Unfortunately for the Bond Bulls, there is an all-important FOMC Meeting next week which could just change the entire market paradigm prism that they have built Zen like obsession with anything yield related. As we speak, there are only four days until Janet Yellen explains herself at an FOMC Press Conference which is never good for Bond Bulls.
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Source: http://marketdailynews.com/2015/03/13/upcoming-fomc-meeting-watch-as-all-the-bond-rats-jump-ship/
