What We're Reading

Markets being forward looking, I believe we're seeing a snap back ahead of this weeks Jackson Hole meeting (Aug 21-23) where policymakers will discuss at length their thinking around the labor markets of major economies, perhaps dropping clues about the path for monetary policy in the months ahead.

The spotlight will be on Janet Yellen, who will speak on Friday in her first appearance at Jackson Hole as Fed chair.

Most will recall Ben Bernanke two years ago that paved the way for an unprecedented $85 billion per month stimulus plan.

While most don't expect anything spectacular out of the Fed Chairwoman given the improvement in the unemployment rate and overall economy, I have to wonder what will happen after the air is let out of the hopium balloon.  QE is still set to end in October.  Tensions between Russian and Ukraine have sent yields lower.  Whether there is further escalation or a resolution is yet to be seen.  The economy is recovering like a limp noodle, but it is improving.  S

• The SEC is investigating electronic bonds prices and why some are hidden from view.  Are customers truly receiving "best price"?
• Hands down the best explanation or deciphering I have seen on Fed policy, Yellen's statement and QE taper. (hat tip GT) CWS Market Review
• Marked weakness continues in biotech and technology names.  Rotation into financials and oil&gas names?  We think so.
• With hopes for SGR (Sustainable Growth Rate) reform dashed, physicians prepare for a 24% pay cut effective April 1, 2014.
• Bank stress tests are out and worst case scenario?  A mere $501 Billion in losses to the Fed.  What could go wrong?  They can always file Bankruptcy like everyone else.  *lol*
• Take Yahoo, minus out it's stake in Alibaba and Yahoo Japan and what's left.............is worthless. Ritholtz (click to enlarge image)
• If you do NOT feel the biotech bubble has burst and you merely feel this is some profit taking and rotation into other sectors, here's a list of the biggest biotech l