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Monday Morning Melt Up

Posted By Barry Ritholtz On June 17, 2013 @ 6:15 am In Federal Reserve,Markets | Comments Disabled

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markets 6.17.13 [1]

 

 

Good Monday morning, and welcome to the melt up.

Japanese stocks are bouncing 2 – 3% after getting schmeissed last week and month. From a 96% twelve month gain, we saw the yen strengthen. Not coincidentally, the Nikkei Dow fell over 20%. Last week saw the Yen’s biggest weekly advance in four years. That counter trend rally seems to have reversed, and once again the Yen is falling — its down nearly 0.5% versus its 16 most-traded counterparts today.

This week we have the Federal Reserve meeting, and you should, if you have any situational awareness [2] whatsoever, already know the outcome of that meeting. Bernanke to Hilsenrath to anyone-who-is-paying-attention is the FOMC version of baseball’s Tinker to Evers to Chance [3].

I believe it is an analysis of the facts and history, and not a forecast, to suggest that the FOMC will stand pat. Anything can and will happen — Humans are involved — but the odds are very much against it.

And if you want even more bullish data, Bloomberg [4] reminds us that “equities tend to rise when the Federal Reserve begins reducing efforts to stimulate the economy.”

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Back shortly . . .

 


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/06/monday-morning-melt-up-2/

URLs in this post:

[1] Image: http://www.bloomberg.com/markets/stocks/futures/

[2] situational awareness: https://en.wikipedia.org/wiki/Situation_awareness

[3] Tinker to Evers to Chance: http://memory.loc.gov/ammem/bbhtml/bb1.html

[4] Bloomberg: http://www.bloomberg.com/news/2013-06-16/end-of-easing-spurs-s-p-500-gains-of-16-amid-economic-expansion.html

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