“For my own part,” Ms. Yellen said, “I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.”
Honestly, I'm not sure what to say... Applaud her for her honesty? Scoff that the San Fran F_E_D Dove couldn't see any of that which most of us at least saw some part becoming a potentially catastrophic problem and many of us seeing at least parts of it years before it happened? I really don't know what to say, truth is Bernie didn't see it either, they were caught flat-footed OR the truth maybe perhaps they did see it, they had a hand in creating it, the so called "Business Cycle" and it just got out of control. In any case, Yellen is about to become the most powerful woman in the world assuming she is confirmed.
I think some expected some market bounce from the "seeming" Ultra-Dove's nomination, although some would contend she's a Hawk in Dove's clothing. In any case, Yellen is no surprise and the fact the market didn't jump for joy is no surprise, it's been priced in. Perhaps the NY F_E_D trading desk will get busy at 3 p.m. to make it look like there are some fireworks and the market is welcoming Yellen, but I doubt there'd be too much more of a response than that.
As for Futures, the Index futurees continued to see improving diivergences overnight, the bigger news though may be the improvement in the $USD which is now positive from 5 min to 15, 30, 60 and 4 hour. The $USD has been in a consolidation since midnight after it made a run higher last night starting around 5:30.
The $AUD looks to be losing some of it's strength as does the Euro as a currency to lead a JPY cross, but the $USD looks stronger than it has and looks like it will take control once it comes out of its consolidation
The Index averages also continue to see underlying divergences improve.
PM's still look like underlying trade has them on the bench or out of rotation for the moment.
I'll have some opening charts up as this first wave of a.m. sell orders runs its course.
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