More Where That Came From

Bernanke in London told basically every one that 'there is more where that came from' with regards to additional stimulus. Markets are nervous and having all agree to the ' no one knows where these markets are going ' song, a trader has to take a shot on the buy side here. The Fed and Treasury are trying to monetize the long positions it would seem for at least for a 25% retracement from the lows. While they certainly do not have a target, they are going to make it increasingly hard not to place some of the liquidity into equities. With the size of the equity pool, that could be a significant position spread over players who in turn are spreading out risk with a discounted market and a long term time horizon. May not bring the bull back, but would certainly diminish bear prospects.