Tuesday, August 23, 2011

No little earthquake can stop this rally!

I'll follow-up with more thoughts tonight but given the sharp rally today when nothing but bad news hit the wires, I thought I should comment.

The market not only expects Ben Bernanke to save the day again at his Jackson Hole speech with promises of more heroi..... I mean, easing, but moves like today show that the market is demanding that Chairman Bernanke do as they say.

There are a number of things that could happen this week:

* We could keep getting 3-4% up days until the speech. At that point most of the benefit of QE3 might be priced in.

* QE3 is not a foregone conclusion and as we get closer people might get more nervous.

Someone pointed out gold fell $60/oz today. If we were going to get more easing gold should be rising, not falling. That's not a good sign for the stock bulls.

Finally, to all of the Californians that are complaining about our coverage of the VA quake - 1) East coast bedrock makes this quake different than yours and 2) Pipe down the next time it rains 0.01" and traffic backs up 10 miles on the 405 :)

Cheers!

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