I’m opening this thread up to discuss today’s market actions. There are plenty of cross-currents out there right now, and things are tricky to read, especially if one is trading.
The supposed reason for this downdraft is disappointment in the Fed’s actions…too cautious and stingy for a market that had priced in some more thin-air money. Maybe a lot more. Here are two quotes that capture this sentiment:
Right before the meeting:
“Markets have been increasingly pricing in additional quantitative easing measures as soon as today,” said Jim Reid, strategist at Deutsche Bank. “The worst near-term development for markets is thus likely to be a meeting that suggests that no additional measures are currently needed. To sustain current levels, the Fed may need to at least signal that they are at least moving towards extending QE at a later meeting.”
(Source – FT.com)
The day after the meeting:
“We’re in a worldwide soft patch and investors wonder why the Fed didn’t do more,” said James Swanson, chief investment strategist at Boston-based MFS Investment Management, which oversees about $197 billion.
(Source – Businessweek)
The interpretation here is that global growth is slowing. Investors do not like what they are seeing in the soft retail and employment numbers and they were hoping for another shot of QE magic juice to keep the recent stock market gains chugging along.
by cmartenson 
