PM GoldFix: MS Bear Wilson Throws in Towel Right Before FOMC Announcement

Goldman's Prime Book sees selling

Morgan Stanley’s Mike Wilson is throwing in the towel (regardless of how he truly feels) today. We think we know why. It’s due to Fed upside event risk. Smart traders flatten losing trades before big events. Unemployed economists do not.

Several contrarian economists are throwing in the towel right before the FOMC this week. Why?

They might really be scared of a dovish blast off. If the Fed says no more hikes, then that is something the Fed likely won’t reverse anytime soon. Shorts will get pummeled. His full report below

Recall JPM’s Head analyst Marko K. had also semi-folded on his bearish thesis about a week ago.

Meanwhile BOA’s Michael Hartnett, while still waiting for a top to re-sell, has folded his expressed bias and suggested to not fight the bubble starting about a month ago. Smart stop-loss if you ask us.

More commentary, MS Report and Goldman’s Prime Services report below…