Boy..Uncle Ben sure has a lot to live up to on Friday. The market has been biding up prices for "The Jackson Hole Boys" Friday performance. There is wide speculation they are going to play another remake of their #1 hit: QE. QE1 was a hit. QE2 was a hit. How will QE3 perform?
Normally, the 3rd remake is a bust. I don't know if they should even release it at this point. The problem is that they painted themselves into a corner. They said they were going to keep rates near zero for the next 2 years. This was totally out of the ordinary. They probally wish they could take that back. It would appear that they are watching the market indexes too much. Fed internal distress is very high right now.They are not going to beat the markets- It would be extremley costly. We are in an extremely precarious position right now. I don't know about other traders; however, it seems QE3 or No QE3 the markets are going to finish their natural progression. We feel it would be better for The FED to not do QE3 at this juncture. Let the markets hit their Dow 9600-Dow 10,000 targets and rebuild from there. Sometimes timming is everything and this is one of those times.
It is 50-50 in here and The Fed is feeling a lot of pressure to unleash QE3 right now. We say it is too early and they should wait until "They see the whites of thier eyes". Let the market have a "correction" of 30%. It used to be natural-20% is not enough. WSR advises not to waste the last bullet at these levels.
