Friday, August 26, 2011

Well, we're 0-for-2

It's been a rough morning so far with the GDP revision knocking our economic output in the second quarter down to just 1% and Big Ben Bernanke failing to deliver the QE3 goods that the market was looking for.

Bernanke's speech was actually in line with what he has said in the past and that did not surprise me. However, it feels like someone wants to read between the lines again and goose the market.

If you remember his last major speech was viewed as a disappointment until Goldman decided that he was basically greenlighting QE3. That turned everything on a dime, even though there was no real evidence of that in the Chairman's statements.

Today's initial reaction was a sharp sell-off but again someone outside of the market seems to have interpreted things differently and the market has now gone green. This could be an interesting day.

Cheers!

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