NEW YORK (
) -- The markets fell Wednesday after
Chairman Ben Bernanke pulled back on another round of quantitative easing.
Dow Jones Industrial Average
fell 53.05, or 0.41%, to 12,952.07. The
lost 6.50, or 0.47%, to 1365.68. The
retreated 19.87, or 0.67% to 2966.89.
Joe Terranova said on
's "Fast Money" TV show that he was alarmed at the 5% drop in gold. He said that while it may have been due to Bernanke's comments on quantitative easing, people were getting out of their long positions and shorting gold and silver.
Ron Insana thought the market may have overreacted to Bernanke's comments. He said Bernanke did say the Fed would provide an accommodating monetary policy to get the unemployment rate down to its target level.
Dennis Gartman said he did not know what was going on, but he wound up selling some gold today. He said the drop in gold may be due to the signal from the Fed and ECB that quantitative easing moves may be shelved for awhile. He said that's a problem for gold, which needs easier monetary policies.
Dough Kass, a RealMoney Silver contributor at
, said the risk-on trade is coming to a close, adding the easy money might have ended today. He said investors need to ask themselves three questions. First, what role has liquidity played in the market rally and what would be the impact if some of that were taken away?
Second, what role would a zero interest-rate policy play on domestic economic growth and how that growth can be sustained without interest rates at zero? And third, has a zero interest-rate policy begun to lose its impact?
He said he would take in profit in long positions, build up cash and be short in selected issues and industries. He said he shorted
and would short China through the
iShares FTSE China 25 Index Fund
He also said he would short
He would also short companies leveraged to capital markets like
Terranova said he didn't believe a deep correction is forthcoming. He said the financials traded well today and that VIX didn't spike.