Tuesday, August 24, 2010

Rally Catalysts

Here are a few catalysts for a bounce that I am thinking of right now:

  1. Better than expected or in-line jobless claims numbers.  The expectations have gotten sufficiently low that there is a reasonable chance that they can be beaten.
  2. BOJ yen intervention to weaken the yen.  It is a temporary boost to investor psyche in Japan and Asia which would carry over to the US for at least a day or so.  
  3. Fed chatter when they gather on Friday and Saturday in Jackson Hole about more quantitative easing.  This would only be a short term boost to the market but would provide an excuse for a bounce.

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