Bernanke is Clear on Triggers for QE3, and We Aren’t Close to Them


Author Larry Berman

Posted: 1 Mar 2012 reposted from etfcm

Yesterday was the first notable higher volume distribution day since December. All the news wires and headlines this morning are blaming Bernanke’s lack of talk about QE3. He has been pretty clear what the triggers are for QE3 and we are not close to any of them. In fact, the thought that they would launch another QE with operation twist still playing out is staggering. There are many very smart people on Wall Street—we find it hard to believe they are that naïve. Nevertheless, these things move markets and are part of trying to navigate the markets.

Outside of some surprise at the reaction, specifically in the 50 handle drop in gold in about a nanosecond as Ron Paul was giving Big Ben a thorough lashing (if this was 1012 and not 2012, it might have been a public bloodletting). Ron Paul has just joined Newt in the unelectable category of candidates who are out of touch with reality. Without the Fed, we would be in the 1930s. Right now we are only in 1999 in Japan. 1352 remains important near-term support; the trading trend is higher until that breaks.

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