Friday, August 26, 2011
Gaming Ben
Bazooka Ben is the main event today. The market is obviously nervous ahead of this event as we are selling off before it. But with expectations low, I don't see much room for a sell the news reaction. And if Bazooka talks dovish like he often does, it would be a huge boost for this market. I would not overstay the long side, but after this event, the market should get a relief rally.
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8 comments:
1250 here we come, the data remains weak, it is sentiment that has shot this market not reality... Bernanke actually gets it, Washington and also the European politicians are sucking confidence out of these markets, i.e. reflexivity
There really is a financial crisis brewing in Europe. I don't think it's make believe. If we really were going to 1250 soon, we wouldn't be trading so low for so long.
Also keep in mind copper which bottomed before the market in 09' still hasn't broken trend.
If the financial crisis was brewing for real the US$ versus Euro would be much stronger. What we have seen in my view is the law of unintended consquences. ECB intervenes in Italian and Spanish bonds, no longer a good macro hedge, funds move to hedge with banks and stocks, they get banned no longer a hedge, they then move to DAX worst performer month to date, the also move to bank CDS's which are illiquid but freak amatures out when the pop like this. I am not advocating buying European financials as the have a Japanese style future but we aren't collapsing now.
Owl u think the rally sticks rest of day?
Yes, the Street is not positioned well for a rally and will scramble to get long ahead of the weekend.
Fast Money all expecting the market to weaken into the close. This intraday rally has more to go.
I'm looking for the rally to continue thru next week. End of the month..end of the quarter. Buyers will be out in force.
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