Two days ago I warned that "We are coming to a definitive point in the markets" in the post :
Time to short S&P 500 ? Depends on Fed Meeting Wednesday
Evidently it was time to short as the Fed announcement disappointed the markets as the "Operations Twist" was already priced into the markets and then some. It appears Big Ben realized that further asset outright purchases would elevate commodities (ie gold) to levels that are unthinkable and with that inflation creep which has already started to occur.
It has been commented on many websites that until the S&P 500 gets to the 950-1000 range QE3 will be unlikely.
We will see if the range will be broken sharply tomorrow, the selling continues expect that 1000 much sooner that most people think. October might be a "typical" October where markets get reacquainted with economic reality.
No comments:
Post a Comment