Unwinding quantitative easing | Forex Factory

  • Unwinding quantitative easing

    From voxeu.org

    Fed Chairman Ben Bernanke’s prepared statement on 22 May was the epitome of even-handed non-committal drafting (Federal Reserve 2013b) but the mention of "stepping down" and "in the next few meetings" in the discussion sent a shiver through financial markets worldwide. Bond yields jumped just about everywhere; the Abenomics euphoria in Japan deflated; and capital flows to emerging markets reversed direction. Bernanke was just pointing out the obvious and he went on to say that “we could either raise or lower our pace of purchases going forward”. Why were financial markets so startled? The problem is twofold: ... (full story)

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Mike Haran
Jun 23, 2013 6:32pm
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Let me make a prediction here based on nothing more than mathematical cycles. Not a single mention of any figures, how traders think this or that is unwinding simply mathematical cycles.

17-18th August the market should make a reversal to the downside, this will be a dramatic sell off. I anticipate the move to be possibly 10% or more in the S+P.

We now might go sideways to up into this point, that I cannot predict, so sticking my neck out lets see what happens.

Mike Haran
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