Jul 172012

It was day 1 of the Ben Bernanke show as the world financial markets watched his Senate Comittee testimony and Q&A.  His prepared statement started around 10am EST and the ES continued to selloff as it became clear there was no new indications further stimulus in the immediate future.  Once the Q&A began, price tumbled even further into the 40/43 area I had posted in chat to frame the low of the day.  Since Ben was just beginning his long day of answering questions, this example trade opportunity was aggressive.  As it turned out, the trade got a little lucky…  A Senator from NY explained to Bernanke that the Congress would not be able to get anything done without bipartenship and pleaded for Bernanke to do everything in his Monetary Policy power to help the economy recover.  Soon afterward, a Senator asked about specific ways the Fed could help stimulate the economy.  This seemed to be enough to change the mood of the markets and they started climbing, all the way back through the early morning high of the day.





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