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 Last week’s market action  Euro Debt Issues  Bernanke Defends QE2  China’s Currency Issue  Market is at a crossroad: Where is it headed?  Economic Data/Holiday Spending  What’s the trade?

 Short week for the holidays  North Korea worried the markets  Market was concerned Euro debt issues in Ireland and Greece may spread to other countries  Fed minutes revealed officals were split on QE, but the benefits out-weighed the risks  Fed lowered its economic outlook on GDP and employment for 2011  FBI raided hedge funds out east on insider trading

Bernanke Defends QE Airtime: Fri. Nov :00 am ET

 Bernanke defends Fed’s QE  Concerned about long- term high unemployment & deflation  Near term spending is needed to increase growth  Fed committed to price stability-has a 2% inflation target

Has the Fed and QE2 put a floor in the market?

 reserve-chief-hits-out-at-china/ reserve-chief-hits-out-at-china/

 Fed aware of dollar’s reserve status  Criticized China over exchange rate intervention  Global imbalances-2 speed recovery  Warns currency intervention could slow global growth  Say int’l exchange rate system flawed  Fed will make sure it won’t have problems unwinding it’s QE

 There’s a 2-speed recovery going on  Emerging market economies are growing faster than developed nations  A lot of the global imbalance is due to currency manipulation, China is the biggest manipulator

 China is an export led economy  Relies on exports for growth, so it needs a weak currency  China has been pegging their currency to the U.S. to artificially make it lower  Solution: China needs to convert to a more consumption led economy like the U.S. and rely less on exports

Charting U.S. ISM Airtime: Tues. Nov | 4:37 PM ET

 China’s growth is driving the world economy  Chinese growth is tied to U.S. new ISM orders  China is the factory of the world  China is concerned about U.S. recovery  Strong U.S. consumer is needed for a strong Chinese economy

Is the Selling Overdone? 4:20 min to 8:30min Airtime: Tues. Nov :25 pm

 Euro debt/Korea issues overdone?  US economy grew faster than expected in Q3  Corporate profits very strong rising 11.5 %  Strength of business recovery over shadowed too much by weak US consumer, housing market, and high unemployment  Housing market still a big problem, weak recovery till housing recovery picks up more  Fed will do everything it can to keep recovery from slowing down  Euro has farther to go/shorting dollar is a crowed trade

Big Drop in Jobless Claims Airtime: Wed. Nov | 8:00 AM ET

 Initial Jobless Claims down to 407,000 from 441,000 the week before  Good weekly gage on the employment situation  Personal income & spending up  Durable goods orders down

 Buy low, sell high  A winning strategy

 Oil stocks have been strong  HAL, SLB, WFT,  RIG still cheap  Have banks bottomed?  BAC, AIB, C, FAS