You can't see the future with no clue of the now

Markets are stalled until today. Things look calm, perhaps too calm. The things that caused Tuesday’s upset, whatever they may have been, haven’t abated. On the other hand, the damage done was insignificant, to say the least.

There are some small sales, but people with strong views and money in the game are unlikely to have changed their minds on much. We live in hope that later today Chair Yellen or the U.S. Congress will еnlighten us. And that will probably be true all the way through to tomorrow

Before concluding that you know where this is all going, you need to make sense of where we are now.

 The fact that Treasury yields haven’t blown sky-high may disappoint leveraged traders. But for every skeptic about fiscal stimulus and the dot plots, there are those who say markets are stable, liquid and there’s plenty of appetite for new issues. Pretty cool after two rate hikes.

As for equities, they look bad on the shortest of charts. Need to fall further to look ill in any meaningful way. But that’s where all the bears supposedly want to buy. Watch, when it gets down there, all the pundits will be selling the lows.

Source: Bloomberg

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