Log in to today’s North American session Market wrap for December 11
The session following an FOMC rate decision is always a fascinating one.
FOMC days tend to be truly chaotic, due to the flurry of incoming orders, algorithms driving markets up and down, and a general sense of confusion over whether events were already priced in, and if so, whether they were priced in enough.
The best example of this is the spectacular squeeze in Silver.
Up above 10% since the beginning of the week, the COMEX decided to coincidentally up margins in Silver… by 10%.
The flows are getting interesting in this most confusing rate cutting cycle from the Fed and confirms that 2025 has been one hell of a year for trading.
The “Debasement Trade” continued today, but with a tilt towards defensive sectors, with the Dow Jones beating its peers and tech getting wrecked.
The DJIA closes up by 1.34% while Nasdaq closes down 0.34%. Talk about a rotation – That’s a big one.
Post-cut flows are developing but they are still young; things will get volatile until the end of the week.
After this, expect a snoozer until December 16 and the November Non-Farm Payrolls report.
Apart from that, the US Dollar has been diving in a bottomless pit, dragging bonds with it – Longer-term yields are rising while the Dollar sags.
A rough cocktail for the US Treasury.
At least the US President contained his discontent with the only 25 bps cut…
