Wednesday, March 15, 2017

Summary of today's market action


So today, on a Fed announcement that was already baked into futures, so it should have surprised no-one, we saw

1) USD drop 1%
2) gold pop almost 2%
3) EEM pop 2.5% because of course they would when US interest rates rise
4) and oh yeah equities back threatening new highs.

Why?

Because everyone had sold all those things down thinking the completely anticipated and boring Fed announcement would make markets drop.

And yet they keep going up. So now everyone has to buy their positions back.

Bubblicious.

Fair cop btw the guy in the comments a while back who suggested buying EMs instead of DMs.


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