General Stock Ideas

[bigworld]

MF4: Well bernanke didn't quite say he was going to rev up the printing presses again, but with the announcement that the September FOMC meeting would be extended to two days I think it gave enough hints that the market reversed its early losses pretty quickly. From bottom to current levels we've whipsawed about 400 DOW points today. But the important thing is that the counter rally that began on Aug 9th is still intact. If Greece doesn't implode over the weekend the counter rally should resume next week. But it scares me that Greece is now having to pay over 40% on new two year Greek Bonds because the perceived risk has rendered their bonds essentially bidless. I now think this counter rally lasts at least until the FOMC meeting in September and perhaps beyond the meeting if Bernanke coughs up enough free money to Wall Street. But the bias will be to the upside until then. I'm still thinking we will rise until the S&P gets to the 1280-1305 range. Then the next drop off after attaining that level will be significant. I'm sure the next sell off will take out the 1101 nadir we reached on Aug 8th and will probably take out the 1000 level on the S&P and the 10,000 level on the DOW. But that precipitous drop is probably not going to arrive until October (or later depending on Bernanke). We'll still have some significant sell off days, but I think this rally grinds higher over the next 6-8 weeks. Of course all bets are off if Europe implodes at any time soon.