After posting a duo of sentiments Wednesday, outlining the Money Daily "trade of the year," events escalated quickly following the Fed's federal funds interest rate hike of 0.25%.
Overnight, China treasury bonds crashed and trading in key futures were halted in an unprecedented move. Panicked investors sent yields soaring, the 10-year bond hitting a 16-month high of 3.4%. Elsewhere around the globe, the bond rout continued as yields spiked, reflecting the potential the Fed laid on the table for rising rates through 2020.
US stocks gained on the day, though the closing prices were less than half of what was achieved at midday.
As predicted, the silver price was clubbed like a baby seal, dropping to a high-15 handle early in the day and never recovering. Whether the move in silver (and gold) can be stemmed short term, it's likely that pricing will remain moribund unless further events occur to derail the massive spike in the US dollar.
The inverse relationship between the dollar and all commodities is especially pronounced in volatile silver. The Money Daily call to "buy at any price under $16/ounce has already been achieved, but indications are that it could continue as low as $14.75 the ounce.
Hang tight through tomorrow and the weekend, as Friday is a quad-witching day for options and futures expiry.
At the Close:
Dow: 19,852.24, +59.71 (0.30%)
NASDAQ: 5,456.85, +20.18 (0.37%)
S&P 500: 2,262.03, +8.75 (0.39%)
NYSE Composite: 11,131.85, +33.18 (0.30%)