BALTIMORE (Stockpickr) -- Operation Twist is having the unintended consequence of wringing any bullish sentiment out of the market this morning -- not exactly what the Fed had hoped for when it announced its plan yesterday afternoon.
Simply put, investors were expecting a big action from the Fed to help the economy. Instead, what we got was Operation Twist, a half-measure that was both completely expected and thought to be marginally effective at best (even if it's providing a perfect trade in an ETF I talked about on Tuesday). The biggest shock from the Fed might just be their lack of any shock at all.
It's not exactly surprising that stocks are selling off this morning. Market participants expected the Fed to kick the door down with guns blazing; instead, they just kicked the door down and ran off. From a technical standpoint, timing could have been better too.
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