Despite NFLX giving back half its after-hours gains, the NASDAQ is surging to new 13-year highs,
the
S&P cash crosses 1750 (to new all-time highs), and the Dow
Transports explodes higher (to yet another record) for the ninth of the
last 10 days. All of this as the USD is monkey-hammered and the
EUR surges to 2-year highs... Treasury yields are dropping fast (down
5-7bps across the curve). As we noted last week,
US equities have caught up entirely to the Fed balance sheet. Gold (back above its 100DMA) and silver are surging and oil is pressing back up towards $100.
The
reason for all this exuberance: the jobs number was sufficiently
horrible it has moved the tapering consensus to March 2014 of beyond...
Gold has broken above its 100DMA...
Treasury yields are dropping fast...
EURUSD at 2-year highs...
US equities just won't stop...
and this is why...
Perhaps equities will stall here as they have reached their short-term Fed balance sheet fair value... or not...
