Thursday, August 25, 2011

What If

What if Bernanke announces what passes for Q E III tomorrow?
No doubt we will get a short term blow off.
The early 2009 intervention resulted in a 170% move, the Aug. 2010 Q E II announcement resulted in  62% increase in Crude Oil prices. My guess is we see much less reaction this time around, say 38% , resulting in a bounce to roughly 95 from the lows of 70.
 That will not necessarily result in a change in the primary Elliott Wave count, that WTI is in a 3 of C down.

If he doesn't announce anything substantive, higher energy prices will not be one of Obama's problems in 2012.

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