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I will be out of touch all weekend, appearing sparingly if at all. Huge week next week pulling the EU into the light and then setting the table for the Fed on the 12th. I suspect we will hear a lot of bad news that will be accompanied by a lot of easing rumors both here and abroad.
I suspect volatility should return with downside action only spurring violent reactions from more Hilsenrath prompts and Potter wand waving miracles. It should be a wide range bound wild ride not meant for the one's with weak stomachs. I would not suspect any higher highs till the week of the 12th and that would be only if easing is announced. Then again, it is their game and we have to follow their ever changing rules, so anything is possible. If BB is willing to throw congress under the buss verbally, then maybe he is willing to prove his stance by generating some real market fear to whip them into action?
So I don't have to get too deep in the matter, I suggest you watch this interview with former Fed gov Heller. Like I said in the comments Friday, BB threw congress under the buss (deservingly so). I guess it is time for our reps to put the big boy pants on and get to work. OK, OK, we all know that is impossible as they only know how to spend and not cut, but it sounded good for a second. The fiscal cliff is real and so is my "event". We're nearing the end folks. Tensions from this point on will only grow. I suspect we get a round one of positioning before the holidays, a break and then the shit will hit the fan after the first of the year.
Enjoy the holiday weekend. Labor day, celebrating the 23 million out of work I guess or all the jobs shipped overseas possibly? Celebrating our economic achievements these days is rather stupid idea if you ask me. We should be, like the markets, celebrating QE day, Stimulus Day or Debt Day as those have been the real driving factors over the past few decades as the American worker has been thrown under the buss.
Have a great holiday weekend.
GL and GB.