Week Aug 12 2011 – Weekly Recap & The Week Ahead
“I sell Euphoria and buy Panic. Gapping to the upside is “euphoria”, while gapping on the downside is “panic”. Jim Rogers.
1. S&P downgrades Fannie, Freddie to AA+ from AAA
2. Top largest point drops for the Dow Jones Industrial Averages — according to the WSJ
3. China inflation growth poses dilemma for central bank — China inflation rose 6.5% in July, beating forecast and hitting its highest level in three years.
4. Swiss take more measures against strong francs — The Swiss National Bank said last Wednesday it was taking additional measures against the strength of the franc after the rise in risk aversion on global markets “further intensified the overvaluation of the Swiss franc in the last few days.”
5. Six Republicans named to ‘super committee’ — Republican congressional leaders named six members of their party to a newly created “super committee” charged with finding $1.2 trillion in deficit reductions over the next 10 years.
6. Fed: Low rates to stay till at least mid-2013 — The Federal Reserve expressed much more concern about the economic outlook and said it would hold interest rates at ultralow levels “at least” through mid-2013, the first time the central bank put a time frame on their duration.
7. Four European countries impose short-selling ban — Belgium, Italy and Spain round out the other countries that will impose or extend existing short-selling bans beginning Friday, according to a statement from the European Securities and Marketing Authority late Thursday. The ESMA coordinates securities and trading rules among European Union member states.
The week ahead — Economic data from Econoday.com:
