Anticipating Bernanke

what will he say?

QE3 is a doubtful forecast.  check this Many are thinking the Fed might not go there again.

Other options:

Buying longer end Treasuries -- lower real rates -- bad for dollar, good for gold & possibly stocks
Reduce bank reserve's interest to zero -- force loans/credit
Cap yields on treasuries (short and medium term) -- spur spending / lending

Herd mentality?

gold correcting [profit taking, too high?, potential increased margin requirement coming, markets stabilizing? (I think not), testing support?]

Check out this one from money game:  Herd mentality has descended upon Wall Street, as S&P 500 stock correlation reaches its highest levels ever. This unseats former records set in 1987, when portfolio insurance strategies caused stocks to tumble in tandem. Analysts have learned to expect high correlation in bear markets, when investors rush to sell off equities. But Felix Salmon has noted that the rise of high-frequency trading and ETFs could mean that high correlation is just part of a larger trend. Either way, this spike in correlation is far from reassuring for markets.

I think that people are driving the market up for one last shot at profit taking.  We fell pretty hard, but there's no justification for a rally or run-up.  Who knows?

shift to Europe

follow the Eurozone: http://macrosnap.blogspot.com/2011/07/interactive-eurozone-chart.html

Also from the Economist: Dylan Grice at Societe Generale is one of the top rated strategists in London who has long argued for an overweight cash and long gold position. He thinks the markets are pushing the central banks to monetise the issue; with the Fed indulging in a third round of QE and the ECB loosening the purse strings to buy unlimited bonds. However, he thinks it may take more of an air of crisis before the authorities finally capitulate; perhaps a big European bank in trouble or if French yields start widening towards Spanish levels.