Unbelievable, no wonder the F_E_D is openly threatening the US stock markets in a veiled sort of way, "Concerns about volatility" aka "Fear", "Concerns about complacency".
The F_E_D's Richard Fisher recently speaking, in an interview,
"This indicates a great deal of complacency," Richard Fisher, president of the Federal Reserve Bank of Dallas, said in an interview. "When you get complacency you're bound to be surprised at some point."
The F_E_D's Bill Dudley,
- *DUDLEY SAYS VOLATILITY IN MARKETS UNUSUALLY LOW
- *DUDLEY SAYS LOW VOLATILITY IN MARKETS MAY INDICATE COMPLACENCY
- *DUDLEY SAYS LOW VOLATILITY IN MARKETS CAUSE OF CONCERN
However when the F_E_D's own communication isn't quite hitting the mark, as they have so many times before, they turn to Hilsenrath. The latest and greatest (and when the F_E_D or Hilsenrath speak, you better listen),
the unofficial mouthpiece of the F_E_D, the WSJ's Jon Hilsenrath this week confirming the F_E_D is upset that it created a risk free market.
In any case, the latest example of this knee-jerk "worrisome behavior" just came on the biggest Plain-Jane NFP report with a print of 217k which seems to have been goal-seeked with seasonal adjustments to come right in at consensus of 215k with the unemployment rate below the F_E_D's initial guidance for rate hikes of 6.5% now at 6.3% and the market's knee jerk reaction...
ES's knee jerk to the bore-some NFP, however, while a risk on spike takes place at the same time, the whole treasury complex...
Also spiked in a "Risk OFF" move.
Here's the NQ/NASDAQ 1 min chart (the trend isn't long enough for some reason to see all of overnight like TF.
TF/Russell 2000 futures.
As I said, there's migration to longer 5 min charts such as this ES 5 min negative which has always been a good short term indication of market change of direction, but this is even worse...
It has also migrated out to the 15 min charts, Russell 2000 Futures and even as far out as...
60 min. This is the trend of underlying action during the move above the range. It's amazing how similar this 60 min NASDAQ futures looks to a slightly different version of 3C and on a different index...
The SPY...
And the trend for the year...
However we already received confirmation of that this week from BAC...
Institutional net sellers for quite a while, but especially recently....
Maybe they are hearing what the F_E_D is saying?
The buyers in green, that would be dumb money, retail, as usual, "Sell in to strength/demand" otherwise their large positions collapse on themselves.
Don't forget, the normal op-ex max pain pin rules apply today until about 2 pm
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