-December 7th…National Pearl Harbor Remembrance Day! If you have a chance, please go visit and learn of the heroics.  
-Bernanke strikes again. No longer will we be calling Jay Powell by his name. His new name is Bernanke. Why? Back during Bernanke‘s tenure, every time markets got in trouble, Bernanke would either talk more easy money, do more easy money or the big enchilada of printing the easy money. You remember! QE1…market rallies. QE1 stops…market drops…time for QE2. Market rallies. QE2 stops…market drops…QE3. Market rallies. It looks like Bernanke part 2 is here.-
-Markets have been crushed recently. What is Bernanke to do? First, announce you are back near neutral. In other words, we are going easier. Markets rally. But oops. Markets stop rallying because they are just words. Markets tank. What is Bernanke to do? Announce part 2 in less than a week that you will slow the rate increase pace. You did see the headline this morning in the WSJ? The fact is Bernanke has to raise rates in December because all credibility would be lost…but that’s it. You will not see another rate hike. These people that created the bubbles know they cannot have the bubbles pop…so here we go. If it first you don’t succeed, try try again. Of course, markets rallied nicely into the close yesterday off this news. We must admit all 700 points points did not come after the announcement because we know Bernanke would never leak the announcement first before making the announcement. Right? That would be unethical. That does not happen.-
-Just leave no doubt the man who said in 2012 that investors know the Fed will protect them from losses has put his cape on and is trying to save the day. A further market drop and you will be hearing the trial balloon of actually lowering rates.-
-But the big question is whether there is any ammo left. Germany just announced contraction but the ECB is still negative with rates and still printing money. Japan just announced contraction but they are also negative with rates and still printing money. What other arrows would they have in their quiver. We are at a tight (sarcasm) 2% with the 10 year now under 3%.- 
-Technically, the markets held the lows for the third time yesterday. This is vital. We told you midday yesterday that if any day was going to reverse, it had to be yesterday. We did not predict it but knew the market needed another goal line stand. We will know a lot more by how strong the market bounces but after we scanned 2000 stocks, 200 sectors, every country and every commodity last night…not very thrilled. It is good to see the major indices hold for the 3rd time but less than impressed with what we are seeing. Leadership remains in the most defensive of areas in utilities, reits, a few defensive consumer staple names but actually seeing some real good action in a few names in the software group…but we never argue with decent reversals. And before we forget, there were over 1100 new yearly lows yesterday while major indices held the lows. Internals not so great.-
-This brings us to this morning. We told you weeks ago that the norm going forward would be a missing and a lowering of economic expectations. Markets have been telling us so. We just received one in the employment report. Expect more of this. Futures actually rallied off the weaker news because why? Bernanke is back as any weakening of markets or the economy will move this man. Whether or not it helps is another story.- 
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