Gold is up, stocks are dead, vol is dead, bonds are flat, mcro data is disappointing, and Trump is rattling sabres...
Small Caps and Trannies remain red post-Fed, Dow, Nasdaq and S&P are barely green...
After a phenomenal 2015, in which JPM's head quant Marko Kolanovic as if by magic managed to correctly call every major market inflection point ahead of time, he found 2016 far more challenging, although toward the end of the year, he did get a second wind, and his key predictions since the Trump election have panned out, as he himself note in his latest note:
Submitted by C.Jay Engel via The Mises Institute,
As Jeffrey Lacker leads the pack on the Fed’s “concern of overheating” front, last Friday’s 2016 fourth quarter GDP numbers completely contradict the narrative. Coming in at a paltry 1.85% growth rate, the Fed was handed yet another excuse to push off the so-called “normalization of interest rates” further into the future. The Fed's FOMC again confirmed as much at its February meeting.
Finally, the Fed is in Trump's sights.
European shares and S&P futures fell amid mixed earnings from corporate heavyweights, while Asian stocks were fractionally higher. The dollar slump continued against all its major peers after the Federal Reserve gave dollar bulls little to be optimistic about. The U.S. currency dropped toward the lowest close since November after the Fed reiterated its intention on Wednesday to lift rates only gradually.