We'd seen several indicators and pieces of analysis to suggest Fed expectations were priced in. That may be true; and the price action yesterday (following the announcement) and this morning may be a blow-off squeeze of sorts. In the recent history of QE and Twisting, the rumors and expectations in the months leading up to the actual action have created the environment for risk assets to rally. These assets, however, have sold off in the periods after the actual action. It is the classic "buy the rumor, sell the news" dynamic.
Market Vitals | 14 September 2012 [http://blackswantrading.squarespace.com/storage/market-vitals/091412_mv_fed_up.pdf] ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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