“A good trader has to accept three things: a chronic inability to accept things at face value, to feel continuously unsettled, and to have humility” Michael Steinhardt

The major indices bounced from 2010 lows after a 2-week sell-off. Below are the major events which occurred this week.
1. Central banks swap gold to IBS (Intl Bank Settlement) — 349 metric tons of gold and hope to buy back at a later date.
2. Europe’s bank stress test — schedule for this coming week.
3. Spain sold 8bil Euro in 10-year debt at the rate of 4.874% — 140 bps higher than Jan 2010.
4. China looks to tax resource companies (Coal, Oil and Gas) in Western China area.
5. Retail Sales so-so in June
6. Consumer credit fell sharply in May — 4th straight decline in borrowing
7. AAII shows the lowest decline in Bulls since march 9th, 2009 bottom in stocks. Below is the chart from AAII percent in Bulls.

The week ahead — official 2Q earnings season start:
1. Mon – 7/12 –> Alcoa (AA)
2. Tues – 7/13 –> Intel (INTC), Yum
3. Wed — 7/14 –> Retail Sales; Texas Inst (TXN)
4. Thurs — 7/15 –> PPI; Export Sales; Capacity Utilization; JP Morgan (JPM); Google (GOOG)
5. Fri — 7/16 –> CPI; Ford (F); Bank of America (BAC); CitiBank (C); GE