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Wednesday, September 7, 2011

morning update

My below Market Thought post I highlighted what I was looking for before I make a power play into equities and got heavy.  This morning's chatter, I think, gets us closer to the desired out come:

- Greek debt swap has about 75% of participants involved. (IMO, that is good, especially early in the process. And the market is now pricing in a 100% default. So default is fully expected.)

- Spanish gov are looking to unload and merge CAM with other banks. (I would like to see banks not yet nationalized merge, but this is a good step forward none-the-less.)

- Germany is blocking lawsuits to the EFSF. (Step one complete, the parliament vote remains on Sept 29th. But it is expected to pass.)

- As an added bonus, to quiet the negativity of the 'top-down' economists, Germany produced some nice production numbers this morning.

Then we have other positive data coming through with the $300B Jobs package. (I just hope there is a lot of infrastructure build/repair spending and tax cuts in it.  'Shovel Ready' products did not work last time, so I do not want to see 'shovel ready' BS in this package.)

Side note: I view Nvidia's good results and guidance a prelude to QCOM. With positive sentiment QCOM will re-test the 53 level, and if NVDA is correlated to QCOM, the 53 resistance level will be breached.

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