Home > Uncategorized > 2012/08/28: Quick Post: Back from holiday… Weekly Calendar Now Available

2012/08/28: Quick Post: Back from holiday… Weekly Calendar Now Available

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

Just back in today, and the Big Apple was a blast! I know a lot of Midwesterners find it a bit gritty and WAAAAAY too frenetic. Maybe it’s just because I’m a particularly high strung Midwesterner that I find its energy and attractions far outweigh the intensity and hustle. I suppose it’s a matter of taste, and that means a lot more than just the food. On balance it’s a great town.

The weekly Report & Event Calendar is available through the link in the right hand column. This week’s Summary Perspective on Key Influences will also be available later today. All we can say is Europe’s latest round of ’Kick the Can’ still seems to be working very well.  For all we have our reservations about the extended viability of the US (and more recent European) equities rally, it is a wonder to behold. We offer our compliments to ECB President Draghi on the outstanding spin he attached to supportive comments on the euro at the end of last month in London.

As we noted last week, while clearly stating the European Central Bank will “do whatever is necessary” to save the euro, he quickly backed off at the following Thursday’s ECB press conference to make sure everyone also heard the caveat “within our mandate.” What a wonderful canard by which to flip the whole matter back to the political class regarding the nature of that ECB mandate. And by clarifying the political steps necessary to allow the ECB to act, he also left a much clearer path to potential resolution…

…or at least the availability of a much larger liquidity BandAid for a still very contentious overall solvency problem. And that latter issue is the ultimate dilemma that must be resolved. However, by espousing such extensive support right into the summer holiday season he also managed to foster an extended negotiation window during which it is not possible to get any more negative on the global economy based on a crisis in Europe.

And that is especially so in light of the heavy anticipation attached to the Jackson Hole Central Bank QE-athon on Friday. Now that Signore Draghi has (curiously) cancelled his Saturday speech out there, even more emphasis will be placed on whatever Mr. Bernanke has to say. As regular readers know, we think all of that is so much falderal regarding any actual assistance for the real economy. Yet it must still be watched closely for the potential ‘knee jerk” impact on the near term trend; such as any possible temporary boost it might provide both equities and commodities.

So the equities get to enjoy a bit more holiday hiatus of the likes they have not experienced since 2009. Yet, is it real, or just another Fed QE and Euro-zone ‘solution’ mirage? One aspect we continue to note is the breathtaking lack of detail.

But that is for another time. For now, enjoy the upcoming events outlook and technical tendencies that are still current from last week’s Summary Perspective on Key Influences (also available through the link in the right hand column.) The latter have reinforced all of our recent expectations for equities being the ‘Energizer Bunny’ of asset classes, as they just ‘keep going and going’… at least until last Tuesday when all the euphoric news on the alleged ECB mandate to buy endless mounds of distressed peripheral debt drove the S&P 500 to a new 4-year high, only finish lower.

A minor technical reversal to be sure. Yet, just the sort of thing that occurs during exhaustion phases. And isn’t it interesting that core govvies are still acting like they seriously doubt a sustainable cure for Europe (right now that means Greece and even more so Spain) will actually be achieved anytime soon.

These psychological “bad news is good news” phases are always so interesting!!

Thanks for your interest.

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