What the Market Knows and Doesn’t Know
Whatever your market news source, the message since the Fed meeting has been overwhelming, buy everything, don’t fight the Fed, inflation is baked in the cake, markets have to go higher, buy commodities, sell the dollar, and more of the like. This is supposedly what the market knows.
With the news being so consistent, it may be worthwhile to look at what the market doesn’t know and in that exists the surprise. No one knows what the market doesn’t know, they can only suspect and that is what will keep this interesting.
Surprise Score to Date: ( 4 to 4 )
1) Of markets that commentators said would go higher and have since gone down and taken out lows of the three days prior to Fed meeting:
DBC and DBA (commodity indexes); crude oil, and T-Bonds
2) Of markets that commentators said would go higher and are still holding above the lows prior to meeting (lows to watch):
S&P 500 (1429), Gold (1720), copper (3.633)
3) Of markets that commentators said would go lower and are still under the highs prior to meeting (highs to watch):