If there is no QE today, markets will dip quickly but will be bought in anticipation of QE later.
If the FED only institutes “half measures” the markets will dip but will be bought back in anticipation of more stimulus later.
If the FED does QE today the markets will dip on a “sell the news” reaction but will be bought in anticipation of all that free money.
If the FED announces no more stimulus, the market will sell with no dip buying until about Dow 12k.
As you know, Markets, Banks and Governments REQUIRE endless trillions in stimulus just to pay their bills and to keep the masses placated in The Matrix.
What do YOU think they will do?
11 Responses to Market Reaction to FED
I say “half measures” with room for plenty more…
in other words, you must be a perma bull thinking the markets will never truly go down again.
I was thinking the same thing-
but there’s the problem. If a worthless pleb such as myself is already assuming a quick dip then shot right back up, like the previous 2 or 3 fed announements – and tries to make money off the move – shouldn’t it all backfire in our faces, as per usual?
No more surprises from FED or Markets. They have been declared Unconstitutional…
Buy the dip it is!
They will do nothing. But once things dip they will stimulate again but come late October it won’t help. Bernanke has pressed all his weight on a massive giant spring and the more he pushes, the more coiled the market is and it will end in disaster. Naturally, just in time for the election, but Romney will still keep Bernanke around unless he specifically makes him out to be the “bad guy” and “scape goat” which I doubt.
big hat, no cattle. Hoping to keep a bid under market while secretly expanding balance sheet. Sneaky fucks. Fiscal cliff is the real Issue, daddy; that sets up the selloff for the year-end rally.
You are wrong – in all three scenarios you say the market will dip – no it just went to the moon. Can’t wait to see the price of oil when we invade Iran now!
but ben said he will KEEP INFLATION @ 2%.do not adjust your sets, were are all in control of your economy,and no one will get hurt………
There will be another dip at some point!