Originally Posted by BluffingX
S&P should go up today, since people expect more money to be injected into the economy because of bad retail sales and other signs of slowing economy. But there will be a huge sell off when nothing new is announced this week.
i'm banking on this too. i have puts on the s&p expiring end of week and am really banking on this.
my play the whole time was first to buy treasuries, which i did and sold at a good profit leading into where i was gonna short the S&P and hope for qe3 disappointments. I've been holding precious metals as a hedge against the possibility qe3 comes earlier than expected, and hoping they dont collapse as much equities should the disappointment arrive. Trouble is the Europe summit gave equities an unjustifiably large boost, imo, and they've held up on the qe3 hopes leading into this week's hearings and the early august FOMC meeting.
It would be unusual for the Fed to hint at qe3 yet when nothing of grand substance has changed since they just issued their last statement + economic assessments. QE3 is beyond inevitable but its either more time of this stall speed or another big dip in equities or economic data that will prompt its arrival.