Good Morning. Well today is going to be an interesting day indeed. From another Hilsenrath rumor to a rare AAPL earning miss to the EFSF being downgraded there is a lot for the markets to consider. I won’t say “price in” because what does that truly mean and how is it quantifiable?
The model issued a few signals as discussed below, while a few others came close but not quite close enough.
On the WSJ QE3 rumor, the one piece you need to focus on is the following excerpt which reads like one huge asterisk. And if this was the Fed trying to communicate a policy change to investors they would not do it just prior to the bell. Instead this smelled like an act of desperation. With markets teetering on the edge into the close the timing of this “rumor” was intended to