Home > Uncategorized > 2012/07/17: Quick Post: Weekly Calendar and Perspective still relevant into Mr. Bernanke today

2012/07/17: Quick Post: Weekly Calendar and Perspective still relevant into Mr. Bernanke today

© 2012 ROHR International, Inc. All International rights reserved.

In all humility, our assessment of why the equities would strengthen and other asset classes would behave as they have into the Bernanke testimony today has turned out pretty much as expected… At least so far. The Weekly Report & Event Calendar is still available through the link in the right hand column. The focused comments below it are now also available as well in the calendar section as the Summary Perspective on Key Influences. We hope you find that useful as well.

It contains an opening discussion of why Mr. Bernanke’s little chat at the Senate today is a pivotal influence for the first part of the week. Of course, that includes the degree to which anticipation of some sort of additional quantitative easing (or liquidity expansion by any other name) is an issue the Democratic members are going to push into this political season. And yet, there are quite a few good reasons why the Fed Chairman will more likely demure.

Which is more critical than usual for the first part of this week because…


 he is unlikely to change his tune between his Senate testimony today and what he tells the House on Wednesday. It will all also be a preview of what to look for in Wednesday afternoon’s Beige Book release. And the bulls need the Chairman to be forthcoming on that liquidity expansion because the global economic data (now joined by that of the US as well) is indeed weakening. The bottom line (with apologies to Marx) is that the Fed is the opiate of the perma-bulls… and they realize they need another fix right now to avoid the shakes and potential broader global economic weakness ‘withdrawal’.

However, there are various good reasons why the Fed Chairman is more likely to demure, and toss the lack of economic growth problem back where it rightfully belongs: in the laps of the politicians who will be grilling him today. We shall see.

All the rest is the same as analyzed and reported previous, with the major consideration for most other asset classes being whether September S&P 500 future can indeed Close above the 1,350-55 on a sustained basis prior to failing its 1,338-35 area Tolerance. Whatever transpires there is likely a key to all of the other asset classes trend decision as well. Note the limited primary government bond market pullback in spite of equities strength, and the firmness of US Dollar Index. That speaks of the degree to which equities might be questionable.

Of course, the balance of the General Market Observations and EXTENDED TREND IMPLICATIONS last are included in the Concise Market View section of the Summary Perspective.

Thanks for your interest.

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