1. Some little conflicting information short term as the sentiment and Astro patterns starting Monday hint rather to a short term rally.Price pattern tell a little different story as the US markets are building a wave 4 triangle formation which should be broken to the downside and after wave 5 is finished the information gets back into sink as both would point clearly to a rally within the bear market. The EU markets which rather lead the way down stay weak – the DAX did not even make it back to the weekly Bollinger , which is technically a very week picture. Ironically the Euro does not seem to care but I doubt that is due to Chinese buying of Bunds. The Greece bailout 2.0 falters as a pathetic loophole that gives countries the chance for collateral which is now demanded by Finnland and some others ( even some in Germany). The collapse of this house of cards patched together with cheap aid-bands is just a matter of time ( most likely Q4 2011 by astro patterns).
Bank of America despite the move of the old man from Omaha who is doubling down on bad investments and will be in major trouble soon enough himself since he increases his insurance bets and by astro patterns I can say 2012-15 will be a disastrous period for reinsurance plus his big bets on financials and his billions short Puts on Indices.
Steve Jobs left the ship in dignity but for health reasons and has left 1-2 years of product line to keep up the hype but at some point people will have to stop buying even Apple as the depression goes into a severe phase now and 600 Dollar smart phones are not a crises product. For now with the arrival of IPHONE 5 in Sep./Oct another boost to sales is sure as IOS 5 will have some cool new gimmicks as an advanced voice control feature jsut to name one and the Airbook is also a hot item and therefor Apple stock seems not to be expensive but I doubt they can keep up the growth through 2012. Voice command is the future by the way since keyboards are stone-age features. I want to be able to communicate with a computer and give commands by voice on all degrees that would be real progress compared of slowly hacking into keyboards.Thats coming and just a matter of time and Apple is leading the way again.
Bernanke today will rather disappoint hence supporting the triangle breakout to new lows before a rally starts shortly thereafter. I stick to a QE light which might cause with the rumbling in the EU a quick sell off early next week followed by a rally thereafter. The bond charts do confirm that as we do not have the final counts in for a top in bonds.
Below, for those who are still undecided we present RanSquawk’s preview of what to expect, or as the case may be, not expect, from the Chairman in about 3 hours, when the embargo on his speech is lifted. Also attached is the final summary of Citi’s Steven Englander of what the Chairman’s thoughts would mean for the dollar, as well as various third party takes on implications for gold and other general asset prices. The consensus, as noted yesterday, is one of no immediate escalation in the push for QE3 as the stock plunge has been contained for the time being – a factor that has always been the primary catalyst for Fed decisionmaking. Granted should the S&P drop to around 1,000, everything will change. In terms of catalysts, the next FOMC meeting will be September 20, so at best silence from the Fed today will mean the market is on its own for 4 weeks, with an ugly NFP number inbetween. In other words, the next month is shaping up for yet more abnormal volatility, “as usual” for 2011.