Post Fed Rundown: When Doves Fly
All is well
HouseKeeping: On Sundays for GoldFix legacy “Coffee Crew” we will have a masterclass on Zoom. Founder subscribers are invited to attend. If Founders cannot attend, a recording will be made. Full Masterclass archive will also be made available to them next week. Look for a link to be emailed Saturday late afternoon/ evening with the Premium report.
Good Morning.
Markets are generally liking the Fed’s actions. The dollar and stocks are looking good. Bonds are doing well. Oil, while higher today, dropped nicely yesterday. Gold rallied off its lows yesterday post fed announcement. We talk about the behavior and who was likely behind it in today’s podcast.
Translating Powell
Powell stuck to the transitory vibe, but this time he actually backed it up with explanation. He stated squarely he believed it was from supply chain issues, not wage pressures. If it were wage pressures, then a spiral of sorts would be possible and a more hawkish action would be warranted. Fed notes and comments were taken to be dovish as a result. Which means likely that: Tapering will be fine, it will stop if we need it to, and it doesn’t imply rate hikes sooner rather than later. Stocks jumped, Gold bounced off its lows, and bonds did not panic. Yesterdays Fed Prep Post here.
Weekend Ahead
We have some nice reports to break down this weekend for premium subscribers. Included are Bloomberg on commodities, two Mining reports, and a personal favorite The Credit Strategist. Here’s a couple screen cap samples.
Bloomberg Stocks and Bonds Historical Correlations
TCS Excerpt
GoldFix Podcast
30 second clip
Full Podcast here
Technical Excerpt via MoorAnalytics.com
Bitcoin Brief
Using good technicals when you don’t have an opinion. Revisiting yesterday’s “Data events are opportunities in Bitcoin” comment.
4:53 run time
Guidance
Markets reacted calmly when the Federal Reserve announced, as expected, that it will start tapering its asset purchases. Fed Chair Jerome Powell went to some lengths to emphasize that the pace of tapering does not imply there will be a rate hike any time soon. He said the committee will have to balance inflation prospects with what is happening in the labor market. Bank of England Governor Andrew Bailey will be hoping for a similarly sanguine reaction to today’s policy decision. -Bloomberg
Complete Watchlist HERE
Zen Moment
Bull Gets Hay Fever
gold up $30 from comex close.. ABOVE where the selloff started pre FOMC
https://twitter.com/VlanciPictures/status/1456240827592855552