August 26th, 2011 
Kevin Clark 
Hello All, A fairly dull day on the books as volume was anemic without any tape shaking data. Investor’s are starting to re-evaluate the possibility of QE3 as we get closer to the Jackson Hole meeting where Bernanke gave us the scoop on QE2 last year. In my opinion Bernanke has already played his card with calling out interest rates to remain low until mid-2013. With inflation muted for the time being, now is the time to see how well we can stand without stimulus. With Europe far from a consensus regarding their debt issues, the EU will lead us back into a recession. Gold and Treasuries are telling the true story as they head higher ahead of S&P option expiration on Friday. Will we get some whipsaw action to the downside? On the energy front, the DOE data reported a build of 4.2 million barrels of crude, much greater than API, which brought in a fresh round of sellers from the days high. Also note that the spread between Brent and WTI is at about $22, near the high, and if it were to contract prices would generally have to head lower. No trades overnight, but my bias is that the markets trend lower towards last nights targets. Arman Vahdatinia President, Chief Market Strategist 1-877-338-EXPO [3976] ext. 25 www.ExpoFutures.com *There is a substantial risk of loss trading futures and options. Past performance is not necessarily indicative of future results.
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