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Biggest Short Squeeze In 7 Years Continues After Bullard Hints At More QE, OECD Cuts Global Forecasts
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden / 02/18/2016 07:00 -0500
Just when traders thought that the biggest and most violent 3-day short squeeze in 7 years was about to end…
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… a squeeze that has resulted in 3 consecutive 1%+ sessions for the S&P for the first time since October 2011, overnight we got one of the Fed’s biggest faux-hakws, St. Louis Fed’s Jim Bullard, who said that it would be “unwise” to continue hiking rates at this moment, and hinted that “if needed”, the most natural option for the Fed going forward would be to do further Q.E.
At the time the algos ignored his comment, but once Europe opened, the local trading disks hit the buy button, pushing S&P futures from just above 1915 to 1931 where they were trading last.
It wasn’t just Bullard: yesterday’s Fed minutes were likewise as cautious, if not outright dour, about the future of the Fed’s rate hike which was great news for markets as it means the rate hike cycle has been put on indefinite hiatus. “The Fed minutes show that it does look like they’re gearing up for a slower rate hike path, which is good” for risk assets, said Nader Naeimi, Sydney-based head of dynamic markets at AMP Capital Investors Ltd. “I think this rally has further to go, with the conditions set for the rebound to continue for a little while. Pessimism had got to extreme levels.”
The post Biggest Short Squeeze In 7 Years Continues After Bullard Hints At More QE, OECD Cuts Global Forecasts appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/18/biggest-short-squeeze-in-7-years-continues-after-bullard-hints-at-more-qe-oecd-cuts-global-forecasts-2/
