Buffett and AAPL really just sent the financial press into a tizzy…..who to cover? Jobs, Bernanke or Buffett? Well I know what I am gonna focus on……Bernanke.
But first just a quick comment on AAPL, (read my more detailed opinion here). My sense would be that Jobs resignation will be a non-event and AAPL will likely recover any weakness associated with his departure in the coming weeks as investors again focus on what drives the stock, new products and solid execution.
BAC up 25% as we speak on an investment from Warren Buffett. Futures have turned and now up 1%…..Could this be the bottom for U.S. financials? Maybe, but the truth is we havn’t heard a word out European banks or anything about the debt saddled governments, I guess we will focus on that when they are all back from Amalfi, St. Tropez and Maljorca in September.
Now to Jackson Hole……..it was reported yesterday that Bernanke will not be laying out a plan tomorrow that will suggest the Central Bank is planning QE3 anytime soon…..Markets took the news in stride and ended up closing on the high. I guess the fix is in……I still contend the higher we head into tomorrow the greater potential for disappointment…..that said we are coming off such a severe oversold condition that a 10% rally off of the recent lows could be in the cards in what could be a very low volume final week of the summer.
As I have said repeatedly in this space over the last couple weeks, I am not doing much here because I don’t have strong conviction on where we are going. Although I remain cautious, I am not pressing shorts. I have a few tactical shorts on, all with defined risk…..I will continue to look for opportunities on both sides of the fence to take advantage of this volatility.