Big Ben delivered what was expected, at least for us, and the markets continued their awkward movements towards uncertainty. Watch out for next week, as fundamental components of our economy are revealed, setting the tone through the mid-summer months (mid-July is our feeling).

Follow up from this July low, which could be another 400-500 points on the DOW, we could see a turn around if market psychology overshoots on the low end of expectations.  That is to say, assuming that if the market continues to feel the trend is downward in mid-July, and earnings expectations have been adjusted accordingly, we could be in store for a better second quarter earnings season.  The real test would be if any full year outlooks are revised.

What inventory will look like for retailers, I haven’t a clue. I get the sense that many could have been completely caught off guard by the jobs data (thanks again for fudging the numbers Obama).

I expect tomorrow to continue the downward trend, but again with lighter then average volume.  It’s as though some people are just holding on to their positions, in an effort to wait out this current “correction.”  Japan’s recent admission of the complete meltdown of their nuclear reactors may serve to further dampen not only global growth targets, but for specific technology names that now have supply chain issues.

Japan aside, if China continues to work towards cooling off their economy to prevent inflation going forward, we could be looking at lower commodity prices accross the board.  It may take some time for lower prices to work their way accross the board, but a weakening dollar and continued expansion into the western regions of China make this unlikely.

Our increasing money supply is a bit alarming, especially considering the talks of a QE3 now.

One topic that I need to look into further is the suggestion that QE2 has not yet has it’s full affects on the economy or the markets.  I’d like to see a depiction of that.

By the way, when is the next treasury auction?