Bill Gross on Bernanke

If you don't see the video go here -- Bill Gross on Bernanke

The Morning Call--Bernanke's big day

The Market

Technical

The indices (DJIA 13000, S&P 1399) had a hiccup yesterday, closing down more than just fractionally. Nevertheless, they remain well within their primary trends (1) short term trading ranges [12022-13302, 1266-1422] and (2) intermediate term uptrends [12276-17176, 1292-1872].

The real question, of course, is, will there be follow through to the downside that would extend to the lower boundaries of one or the other of aforementioned primary trends? Lacking omniscience, I have no idea; but were it to occur, our Portfolios would be Buyers.

Volume was flattish; breadth declined with the on balance volume indicator just getting worse. The VIX spiked for the fourth day in a row and is up seven out of the last eight sessions. It closed above the upper boundary of the very short term downtrend. Our time and distance discipline is operative now; but this move is not a positive signal for stocks.
http://www.bespokeinvest.com/thinkbig/2012/8/30/breadth-remains-weak.html

Morning Journal-Bernanke's mistakes

Economics
This Week’s Data

July industrial production was reported at +0.6% versus expectations of +0.5%; capacity utilization came in at 79.4% versus estimates of 79.2%.
http://scottgrannis.blogspot.com/2012/08/industrial-production-remains-healthy.html

Weekly jobless claims rose 5,000 versus forecasts of up 1,000.
http://www.calculatedriskblog.com/2012/08/weekly-initial-unemployment-claims_16.html

July housing starts fell 1.8% versus expectations of a 1.3% drop; however, building permits soared 7.5% versus estimates of a 1.5% increase.

30 Year Bond Tumbles on Bernanke Comment (Chart)

By Bob DeMarco
All American Investor

The 30 Year Bond tumbled 3 points on disappointing comments by Federal Reserve Chairman Ben Bernanke.

It appears that no new bond buying by the U.S. central bank is imminent and this triggering the biggest sell-off in three months.

Bernanke Semiannual Monetary Policy Report to the Congress

In all likelihood, a significant amount of time will be required to restore the nearly 8-1/2 million jobs that were lost over 2008 and 2009. Moreover, nearly half of the unemployed have been out of work for longer than six months. Long-term unemployment not only imposes exceptional near-term hardships on workers and their families, it also erodes skills and may have long-lasting effects on workers' employment and earnings prospects.