All you need to know about today’s bullish action is the big moves in the banks, coupled with upwards moves in government yields.
Banks benefit from higher yields, especially if the spreads widen. In the past, like yesterday, the market would freak the fuck out over the expectation of an impending rate hike.
Wall Street loves low rates.
But today, in all of its grind house splendor, stocks are rallying higher; because today, it’s a good thing that the Fed wants to hike rates 7 times through 2017.
I tip my hat to those of you who are able to deal with this chop, going out there like the maniacs you are and trading it. After doing it for two decades, in some of the craziest fucking trades and markets ever seen before, I am happy to say that I no longer have the desire to play checkers inside of the insane asylum.
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I love the insanity! Makes me seem almost normal.
Amen brother, totally with you there. Started trading in 1997. Buying little single and double family rentals… managing those and playing golf in incredibly loud attire.
IMO the Fed has lost their credibility until they act, when they do raise rates the market will freak out.
Wow, looks like the market just took this seriously….great timing, Fly
Yeah so WTF was today’s pre-minutes action about? Minutes confirm yesterday’s suspicions and stocks take it on the chin.
“Confirm” is the key word – there are many doubters
it will fade just like in Jan. when Fed threatened four hikes PM’s started the dive and equities tried to buy the story that rates up means, economy must be good. I bet this time the fade is faster. the question is this going to be a fast hard dip like sept 2015 or melt down nice as easy like jan 2016? maybe it will be mama bears turn and be not hard nor soft but in between.