Once the news about the surpricing «no-tapering» was known, the US dollar dropped sharply and the crude oil moved sharply up. So did the gold market. December Comex gold was last up $32.80 at $1,342.50 an ounce. December Comex silver last traded up $0.706 at $22.48 an ounce.
The FOMC members do not belive that the economy in the US is healthy enough to begin winding down QE, and they are worried about the rise of the interest rates choking off the fledgling economic recovery.
As long as the unemployment rate remaind above 6,5 percent, the FED still want to keep the short-term rates near zero. It`s not because more people are finding jobs in the US, but because fewer people are looking for work we see a decline in the unemployment rate.
With no change in the policy, we saw markets rallied and volatility evaporated. The special thing this time is that the indexes was at the all time high. DJIA, Nasdaq, S&P 500 and NYSE all went up. Futures and VXX fall 4%.
News to follow today:
Unemployment Claims at 8:30pm,
Existing Home Sales at 10:00am,
Philly Fed Manufacturing Index at 10:00am
Take a look at the last candle stick in the gold index below. What a nice rally for day traders!
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Ket Garden
Shiny bull 