Wednesday, March 19, 2014

FED Lays an Egg....3.19.14

The day started out fine....XIV was up and although there was clearly some early profit taking ahead of a possible FED surprise the mood was pretty subdued.   But then.......

That all changed when the FOMC intentions became known just after 11 pst. 
The daily SPY VIXEN says it all.
Another 10 billion pullback on FED buying caused TBT to soar (TLT inverse), which was technically overdue.(.more on that tomorrow)....and XLU (utiltities) went into free fall...a situation that's not exactly clear.

The emerging markets EEM/SCHE got hit especially hard and the green was hard to find among the large caps.  There was a modest rally at the close and tomorrow's action may well set the tone into the end of the month but for now our bullish SPY M3 signal has been derailed.