Today, the VXX moved a lot after the Fed Survey. Shouldn't this be already priced in or was that abnormal? The market is up although data is much worse than expected. Good short right now? Could break the new lows. http://www.bloomberg.com/news/2011-...index-unexpectedly-falls-to-7-7-from-3-9.html
1) We already knew manufacturing is having a soft patch (not yet an OMGWTFBBQRECESSION but maybe it will get there) 2) Housing data was a bit better than expected 3) Market is not pricing in QE3. I think it would go down at least initially if Benny announced QE3 on fears that this "soft patch" will actually become a double dip. I would definitely sell everything into the first bounce (if there was one to be had) on such an announcement. It doesn't matter how much QE you pump into it, prolonged negative growth = lower stocks.