one of an initial firm positive but giving back a good part of

the gain by day’s end.

• Just yesterday, the European Central Bank stood pat, keeping interest rates steady and not commenting on any further policy measures at this time. Best guess is that they are keeping the powder dry and seeing how the developments play out before showing their hand. A central banker’s most effective weapon during a crisis is surprise.

• Greece goes to the polls on Sunday, June 17, so that Monday will be a big day.

• The " Group of 20" leaders meet in Mexico, June 18 and 19. Depending on the election results in Greece and the market’s reaction, this could be a meaningful soiree for a change.

• The next day, June 20, the FOMC will release their latest monetary policy statement with Chairman Bernanke’s quarterly press conference to follow. Depending on the developments in Europe and the recent soft economic data, this may be the time they signal, hint or flat out announce another round of monetary stimulus.

• And finally, the European Summit will convene in Brussels on June 28/29. Depending on how this crisis develops throughout the month, particularly with Greece and Spain, concrete action is expected out of the EU leaders. There has been talk of a “grand plan” being forged to bridge the banking system and create fiscal unity among the group.

Sgshares      ( Date: 08-Jun-2012 10:46) Posted: