Stocks came in plunging this morning after the shock results of the big lead sled dogs Amazon and Alphabet after the bell last night.
After Asia and Europe when to bed the markets were ‘taken in hand’ and the indices were gradually led upwards, led by tech.
The dollar was off a bit, and gold and silver gained a bit, but gave up a good chunk of their morning ‘safe havens’ trade.
There is still a decided lack of fear, signaling that there has been no capitulation bottom, despite the elevated VIX.
As one of the spokesmodels sagely noted this morning as the Dow Industrials plunged, ‘this is just a little sell-off’.
Where are investors going for a safe haven trade? High Yield ‘Junk’ Bonds. You can’t make this stuff up.
This is just the first course in a banquet of consequences.
GDP came in higher than expected, thanks largely to a low-ball on the price deflator at 1.7%.
The Fed is still likely to take another rate increase in December unless the markets completely fall out of bed. The Fed is raising rates for its own purposes, to get off ZIRP and give themselves some policy room when this latest asset bubble they created blows up.
There will be a Non-Farm Payrolls report next week.
