Stocks were in a highly technical trade off the FOMC announcement.
There was some spin put out, probably by trading desks earlier in the week, that the Fed might increase the taper. This was a howler.
So the shorts were squeezed and risk perception has fallen to a cyclical low.
Summer is a tough time to trade, because the volumes are so dull. But I now have my eye on the short side of the equity markets, in addition to the intermediate positions in gold and silver. As any first year Latin student will tell you without really understanding it, festina lente.
Event risk is very high. But the hubris now carrying the financial sector is powerful. It will cause them to ignore the signs of impending danger, but that change will come on its own schedule.
I came across a phrase the other day, that while unrelated, seems to describe the US financial television channels fairly well. Containing little of substance; all teeth and teats.
Have a pleasant evening.
