Yesterday I said “Wednesday’s data will be bigger than Tuesday’s data which are; GDP, Chicago PMI, Beige Book, and Ben Bernanke speaks to Congress. Moreover, we will get the results of the European LTRO – Act 2. Although some are saying the LTROs are not the QE equivalent of Ben Bernanke, it is. When the ECB repos junk for cash; what else is it than money printing a-la the US Fed.”
The GDP report was better than expected. The Chicago PMI was much better than expected and the Beige Book is always blasé. Even Europe’s LTRO cash-for-trash scam went off without a hitch; but Chairman Bernanke did not.
Although Chairman Bernanke gave his usual central banker double-speak, he gave no indication of QE3 and when asked about it by the Congressional goof-balls, he continued to make no overtures of QE3. Moreover, when asked about his brothers-in-crime, the ECB, he said “The ECB is well capitalized.”
The markets liked neither. The markets love the current ~$10TRILLION faux-stimulus it has gotten from the central planners and hates the idea of the punchbowl being taken from the party. The market wants the punch bowl to stay and wants it spiked again: “Bring on more *hiccup* vodka! Bring on the QE3 and LTRO3.”
When the drunken/methamphetamine addict (the US/global stock market) felt like it wasn’t getting another fix – it instantly suffered withdrawals. I think I saw it lose a tooth or two as well…nasty habit. Anyhow, the withdrawals led to a reversal lower that hasn’t been seen since, oh I don’t know, maybe since QE2 was withdrawn. After that, the drug pusher (read: Ben Bernanke) came right back onto the scene with Operation Twist.
Speaking of Operation Twist and the Fed, isn’t it quite a “coincidence” that Operation Twist by the US Fed is now ENDING exactly when LTRO2 of Europe is STARTING? Did you know that?
Yeah, that’s surely a coincidence…a fluke…a twist of fate…or a direct arrangement of the global central planning masters that rule over everything. You decide.
Trade well and follow the trend, not the so-called “experts.”
Best Trade To You,
President & Founder - TradingAdvantage