WTF ES Going Down Fast AH

[Lojanica]

Quote from m22au:

https://twitter.com/#!/zerohedge/status/90601480561762304

LAGARDE: IMF HASN'T YET DISCUSSED NEW GREEK AID DETAILS WITH EU, NOTHING SHOULD BE TAKEN FOR GRANTED' ON GREECE

That's what I thought. Europe is awakening. Asia's down 2%

The market wants to go down

 

[bond_trad3r]

retest low.

WE HAVE OURSELVES A BALL GAME.

 

[shortie]

another AH, another 10pt sharp drop...

 

[bond_trad3r]

The Bernank is just going to increase QE3

 

[bwolinsky]

Quote from shortie:

-10 pts

The drop was precipitated by a news release that moody's has put the US triple A rating on review, and added that default can be avoided even if the US raises the debt limit. It just has to be timely.

 

[shortie]

why is this man smiling?

 

[bwolinsky]

Quote from bond_trad3r:

The Bernank is just going to increase QE3

No, he is not, and reading through the Fed Minutes release, I did not see any indication of QE3, at least not a QE3 as extensive as QE1 or 2.

The Fed (as testified by Bernanke) emphasized fiscal responsibility over additional quantitative easing and did not seem to indicate any drastic monetary easing. Simply adopting an easing policy isn't the same as a full blown QE3. They simply <b>DO NOT HAVE THE RESOURCES TO DO THIS.</b>

 

[Zr1Trader]

Since the book is thinner after hours wouldn't it make sense for a big buyer to drive prices down to get a favorable price. Anyone see the last two days AH action as bullish?

 

[bwolinsky]

Quote from Zr1Trader:

Since the book is thinner after hours wouldn't it make sense for a big buyer to drive prices down to get a favorable price. Anyone see the last two days AH action as bullish?

There is nothing that would suggest being bullish will turn out to be profitable (until several days past August 2nd) at these levels. These are lower highs heading to higher lows followed by more lower highs and lower lows eventually.

 

[bond_trad3r]

Quote from bwolinsky:

No, he is not, and reading through the Fed Minutes release, I did not see any indication of QE3, at least not a QE3 as extensive as QE1 or 2.

The Fed (as testified by Bernanke) emphasized fiscal responsibility over additional quantitative easing and did not seem to indicate any drastic monetary easing. Simply adopting an easing policy isn't the same as a full blown QE3. They simply <b>DO NOT HAVE THE RESOURCES TO DO THIS.</b>

Do not have the resources to create electronic money on an glorified Excel spreadsheet? Please. QE3 will be big enough to fund the deficits and to keep borrowing low.