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Senior Contributor

OptionEye - Macro Outlook - Dec. 18th

Good morning. 


Stocks heard dovish, bonds heard hawkish. 


The Fed announced yesterday that they are going to be patient in the excersise of raising interest rates. I just don't see it and neither did stocks. They took the announcement to be a bullish statement of more free money. The bond market has sold off as they think that the Fed will raise sooner rather than later and the word 'patient' is more soon than the words ' considerable time'. Either way, it is going to be data dependent and I don't think that the data will be there.


Overnight corn up 5, soybeans up 8 and wheat continues its Russian led rally up 15 cents this morning. 


Oil still the talk of the town. This morning oil is up $1.19 to $57.66. Gold is also rallied big overnight and sits at $1206.54 up $16.81. 


The 10 year also heard 'rate hike' from the Fed yesterday and sold off bringing the yield higher to 2.18%. Stocks heard 'no rate hike' and are up big again here this morning with the S &P up 21 points this morning. 


The dollar is a tad weaker to 89.08 down .05. 


This morning we get Initial Jobless Claims, Markit PMI, Philly FED and Leading Index. 

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