The Financials Review For the week of August 22, 2011 By Frank LaMantia The start of the week looks like it may be higher as utilities, pharmaceuticals, and telecommunication sectors lead the way. Some feel the losses over the last few weeks could have been too extreme and traders with money might be testing the market. The Federal Reserve will be making announcement on Friday so one would expect Bernanke to give some sort of guidance. If the Fed. announces a new stimulus plan this could boost the market for the short term. The lack of confidence may be part of the issue that is suppressing the market and bringing the bears out. Libyan rebels are moving closer to overthrowing the government which has also given the market a little boost this morning. Qadaffi's sons have been captured which shows the current administration is on its last leg. Lowe's announced that it may buy back up to $5 billion worth of stock but the program will have no expiration date. Also, the company said it may implement a regular quarterly dividend of .14 cents. Lowe's has a slow second quarter and blamed bad weather and a cutback in spending by consumers. Let's talk about confidence. There seems to still be a lack of confidence in Europe's bank and debt issues, this has not gone away. The consumer may be sitting on the sidelines in cash while the wealthy individual dabbles in the stock market. The question is whether or not today's rally will be short lived. This trader believes that it is and that caution should be used at this juncture. The S&P still has support at levels in the low 1100s and can be reached in one day of negative press. Disclaimer: Past performance is not indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. The use of stop loss or contingent orders may not protect profits and may not limit losses to the amount intended. Certain market conditions make it difficult or impossible to execute such orders.