August 29, 2011
Good morning. It was a nice bounce back rally for the market last week, with the SPY up 5.33 (4.8%) to close at 117.97. Volatility still reigned, however, with the market appearing unstable all week, seemingly always in anticipation of the next piece of news to affect the market. One of the big anticipated news items was the speech on Friday by Federal Reserve Chairman Ben Bernanke from the financial conference at Jackson Hole. It was in that very speech last year that he outlined some of the potential policy initiatives still on the table at that time, and shortly thereafter he announced the so-called Quantitative Easing II (QE II).