In light of the official “QE-Light” announcement we got today, it’s worth taking a quick look at what’s been a fairly remarkable 2.5 weeks, starting on the 15th of October.
That was the day that Ben Bernanke gave his Boston Fed speech, and clearly was NOT the helicopter pilot folks might have been expecting.
The moment he opened his mouth, gold surged, and then it immediately tumbled, setting the tone for two weeks of gravity-prone sagginess (though of course it’s still high.
Since then the long-bond has sold of sharply, the dollar has basically bottomed, and stocks have rallied to highs now seen since 2008.
The bottom line: that was the day that marked the turning point; today’s action was just follow through.
For a quick look at what all happened today, see here.