Seeking Alpha

Markets are killing the chance for QE3 by frontrunning the action (continually bouncing on hope...

Markets are killing the chance for QE3 by frontrunning the action (continually bouncing on hope of Fed action). The "liquidity put" will only get triggered at substantially lower levels, says Citi's Mohammed Apabhai. He sees 1,285 in the S&P as a key technical level (S&P is currently 1,325) and additional QE coming only if the market were to decline 12% from here.
From other sites
Comments (5)
  • TruffelPig
    , contributor
    Comments (4085) | Send Message
    Those people are a joke saying this. The Fed is looking at economic numbers, unemployment etc. Do these joksters really think the S&P is a good gauge for the economy in the US? There are better parameters and they look bad. Operation twist was extended at S&P 1350. Wasn't that too high too? LOL
    22 Jun 2012, 07:31 AM Reply Like
  • QuoVadimus
    , contributor
    Comments (8) | Send Message
    Yep... this is almost an idiotic statement. If the Fed decided to act on something, it's based on the economic numbers such as manufacturing, unemployment etc. S&P number is a reflection of the economic data plus speculation. Therefore, the Fed will not use S&P number to decide whether QE3 should be initiated or not. My guess is ECB will announce their easing in July, then the Fed will do QE3 in Aug.
    22 Jun 2012, 08:30 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4085) | Send Message
    Your time frame could be correct on the easing part. Easing will come.
    22 Jun 2012, 08:33 AM Reply Like
  • cszkalak
    , contributor
    Comments (22) | Send Message
    The timing has a lot to do with the outcome of a rain-dance. The election in November may be the most significant Fed datapoint. Ben the Beard will want a positive 401K experience before the worker bees go to the polls.
    22 Jun 2012, 09:20 AM Reply Like
  • NumberOne1Azfan
    , contributor
    Comments (8) | Send Message
    What a sad, sad story
    22 Jun 2012, 09:26 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector