Upon today’s release of the dovish Fed Minutes, the stock market lit up.   As this is being typed the S&P 500 gained 1%, the DJIA gained 1% and the NASDAQ leapt 1.6%.   The reason for the buzz:   ZIRP.   Our old friend the Zero Interest Rate Policy.

In the minutes, the Fed revealed that the market’s outlook regarding the timing of future interest rate hikes, “overstate the rate rise pace.”

That was all the market needed.   Jawbone a little ZIRP and stocks get high.

To wit, the 50 most shorted stocks in the S&P 500 were down an average of 2% at the end of March.   Some fell more than 20% — placing them squarely in bear market territory.   As of 3:45 pm, 17 of the 50 are outperforming the market, and 9 of them have eclipsed their average 2014 declines.

 A little Fed cough syrup really calmed down a market that had been hacking quite loudly recently.

Pass the Jolly Ranchers. – LL