xjo weekend zoomba lounge, page-74

There is Option 3

Bernanke has now extended Wyoming by a day to discuss options further.

"Fuller Discussion?
Bernanke said a second day has been added to the next FOMC meeting in September to ?allow a fuller discussion? of the economy and the Fed?s possible response. He didn?t close the door in yesterday?s speech to options he has previously discussed, including a third round of government bond buying. "

http://www.bloomberg.com/news/2011-08-26/u-s-stocks-rally-as-s-p-500-index-ends-biggest-weekly-retreat-since-2009.html


So potentially we may get more promises of the kit bag being opened in need, and what items it may contain


This has to be combined with the big three that I think are required

1. Committed budget/spending plan for the US supported by all sides ( Exclude the extremists on both sides in need )

2. Euro zone strategy that may include Euro bonds with full support from Grermany/France

3. Gillard to ice the carbon tax


Big wish list I know, but we need cohesive government if we are going to avoid the a C wave, recession, or what ever you want to call it


I note the VIX dropped 10 % last night to 35, which appears a lot better than the 48 of the first big drop in August, however it stll sits 5 points above the Fukishima Tsunami and around 15 points abive the average.

Still alot of nervous traders ready to hit the sell button IMO

http://www.bloomberg.com/apps/quote?ticker=VIX:IND


On the upsdie, there has been little made of the current reporting season. It actually travelled pretty well. Dissapointingly we are now talking ourselves into crappy performances in the future that will bring down results in 2012, if sentient isnt restored


So Back to option 3

Bernanke speaks agin during the week allowing a spike in the market

Europe starts to speak around positive things it can do rather than what iot wont do