FOMC Sparks Selling

I bought a toothbrush, some toothpaste
A flannel for my face
Pajamas, a hairbrush
New shoes and a case
I said to my reflection
Let's get out of this place
--Squeeze

After chewing on yesterday's FOMC statement and Bernanke's subsequent press conference remarks, world markets decided that they didn't taste good.

Domestic markets opened red and thus far are trending lower. The SPX has cut thru the 50 day moving avg and violated the uptrend line in place since last November. Near term support at 1600 is coming up close.

Once again, Treasuries are not a beneficiary of a 'risk off' mentality. In the past, investors bought bonds when they sold stocks. Currently both are being sold--consistent with the pattern observed in Japan.

This is what the early stages of a funding crisis looks like.

Gold is selling off again--down another 3.5%.

It appears carry traders are getting squeezed as interest rates rise and prices fall.

position in SPX, Treasuries, gold