Norcini – Wild Trading After Fed Release, What to Expect Next
June 21, 2012
With the Fed increasing Operation Twist by $267 billion, and European leaders meeting today, King World News interviewed highly acclaimed trader Dan Norcini. Norcini told KWN that “After traders realized QE3 was not off the table, up gold and silver went and they closed well off their lows for the day.” Norcini also had this to say regarding the markets: “As someone who has actively traded these markets for over two decades, I find what our markets have deteriorated into to be very distressing.” But first, here is what he had to say about the move by the Fed: “The Fed took the safest, most conservative route they could at this stage of the game. Some of us have argued that it was a little early for the Fed to pull out their big gun of QE3. By going with this type of increase in Operation Twist, it leaves the Fed with more room if we are right back where we are now in a few months.”
Dan Norcini continues:
“Initially there was disappointment on the part of traders who were expecting QE to be imminent. They dumped equities, bonds had a rally off the lows, and gold and silver were hit. But at the end of the day we’re right back to where we were before, where everyone is expecting QE3 at a later date.
This goes back to what Michael Pento said in his KWN interview ahead of the Fed decision, that the conditions were such that the Fed was not ready to pull the trigger just yet….