Weekend Post: Hurricane Irene Edition

As the Wold Banksters gather in the idyllic mountain retreat of Jackson Hole, Wyoming, the East Coast was pounded by a Hurricane.  Anyone else see the symbolism there?

Any way, one of the headlines I saw was that Trichet was working on "radical" solutions for the Euro banks:
http://www.businessinsider.com/the-eu-is-working-on-a-radical-plan-for-banks-2011-8

Awesome.  All we need now is a radical plan how to make the bad debt disappear and we should be all "good."

One of the interesting events of the last week was Uncle Warren putting $5BN into BofA.  The interesting bit for me was how the Global Stock Market rallied huge on this "investment."  Hmmm....

So, you're telling me that a $5 Billion investment from a really rich investor can cause a global rally in asset values worth $500BN to $1 Trillion?  And, we also learned in 2010 that the market can "flash crash" just because some firm decides to sell $3BN in S&P futures in a short period of time?

"C'mon Man!"

If the markets are truly this fragile and vulnerable, then what's going to happen if something really bad happens?  

Ooops.  I almost forgot....the markets did lose 60% of it's value in less than TWO years way, way, way back in 2009.

And, we wonder why people would rather park their bucks in low yielding Government securities....

I've been thinking more about gold lately, thus it's the focus of my efforts the last few weekends.  I find myself wanting to short OCT straddles, like the 1700/1900 or 1600/1900.  I think we're going to lapse into triangular congestion next several weeks.   I also find myself wanting to just take a stab at being short OCT futures around $1854.

Gold Report 28AUG11


In regard to the S&P 500, I just see more "sideways" triangular chop in the next 2-3 weeks.  Zzzzzzz.