Wednesday, September 18, 2013

No Taper!

Everybody expected the Fed to announce there would be some tapering in the near future. But surprise, surprise, no taper... Indices jumped on that news, from down a little bit to 1%-gains in no time! The reaction in metals and oil was also positive (for bulls anyway), but much more extreme (see below - euro, oil, metals).
Here a look at the futures about 50 minutes before the close of the session:

Hereunder the 5-minute chart for SPY. Until 2PM, the range is about 60 cents. Then, when Fed-minutes are released: an explosion! Almost 150 points higher in less than 5 minutes. Another 100 cents higher comes the top (/high of the day). Impressive stuff from the bulls.

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro lately is moving along with major indices with a high correlation. Up 1% an at 1.35 now (new highs)! Oil made even bigger gains, up 2.5% and now trading near 107.5. Finally a bounce after 3 losing days!
Metals were the big winners. Copper was up almost 3%, gold gained more than 4% and silver went berserk: almost 7% higher!

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