The financial world is going to focus on the small mountain town in Wyoming tomorrow.
For thirty years every August the Federal Reserve Bank of Kansas has been holding their "economic symposium" in Jackson Hole. Some of the biggest names in the world of global finance show up. The Federal Reserve Chairman usually has a speech. Lately the President of the European Central Bank (ECB) makes an appearance as well but this year Mario Draghi has canceled his appearance at the last minute.
We have been warning readers for weeks that Fed Chairman Bernanke's speech would likely disappoint the markets by not announcing any new plans for quantitative easing (a.k.a. stimulus) for the U.S. economy. It has been this hope of further stimulus that has helped fueled the stock market's rally off its June lows.
It would be a huge surprise if Bernanke did announce some sort of stimulus, which would probably spark a huge amount of short covering. Odds are he will merely hint that the Fed stands ready and able to help should economic conditions deteriorate enough to warrant assistance.
We are not adding any new trading candidates tonight since the market could be up big or down big by Friday's closing bell.