Norcini – Global Markets In Extraordinarily Dangerous Situation
June 8, 2012
With continued turmoil in global markets, today King World News interviewed highly acclaimed trader Dan Norcini. Norcini warned KWN that “markets are in an extraordinarily dangerous situation” and they “remain at risk of a continued collapse.” Norcini has done a remarkable job of keeping KWN readers around the world way ahead of the curve in terms of the turbulence in these markets. Here is what he had to say about the action in the markets and the precarious situation global investors face: “I think a lot of traders were caught off guard by Bernanke’s testimony yesterday, Eric. It appeared that Janet Yellen had telegraphed that there would be additional monetary stimulus forthcoming almost immediately. Janet Yellen and Bernanke tend to be dovish when it comes to Fed policy, meaning they think along the same mindset.”
Dan Norcini continues:
“As a result, traders read Yellen’s comments two days ago, pushing for additional monetary accommodation, as leading into a continuation of that thought pattern in Bernanke’s testimony yesterday. So when Bernanke came out with his testimony, again, it caught everybody off guard.
The markets had already moved because China had cut interest rates overnight and there was the anticipation of Bernanke announcing some additional stimulus. Gold and silver had moved, along with the dollar and bonds and then everyone got caught flat-footed….