From: Sent: Mon 8/8/2011 12:24:09 AM Subject: Fw: Zervos: Some thoughts on the early price action From: Layla Peruzzi Sent: Sunday, August .11.1 1 Subject: Zervos: Some thoughts on the early price action lentos comments on early price action: The CHF rallied over 2 percent before everything else opened which seemed an ominous sign. But now it is up only 0.5 percent. Tyu is DOWN on the session after starting up 9 tics. Spoos arc up over I percent from the lows at 1262, but are still down just about 1.5 percent from Friday. Feels like the market is NOT going to buy long dated Treasuries on the weekend news, and risk off is losing a lot of steam from the early indications. The G7 and ECB statements are VERY positive risk here. Let's see how Asia trades but so far the Euro crisis and the US downgrade are not seeing a big risk off follow through. The fact that the G7 guns are out is a big deal - *G-7: WILL COOPERATE CLOSELY ON CURRENCY MARKET ACTIONS *0-7: TENSION FACED BY ITALY, SPAIN DOESN'T REFLECT FUNDAMENTALS *G-7 SAYS IT WILL. BE IN CLOSE CONTACT NEXT FEW WEEKS The G7 involvement, thanks to Silvio, looks like a game changer. (rood luck trading. http://www.Jefferies.com/salesandtradingdisclaimer/ Jefferies archives and monitor messages. This message is confidential. This message may be produced to regulators or civil litigants. Jefferies accepts no liability for any errors or omissions arising as a result of this transmission. In the United Kingdom, Jefferies operates as Jefferies International Limited; registered in England: no. 1978621: and Jefferies Bache Limited; registered in England: no. 114226; registered office for both: Vintners Place, 68 Upper Thames Street, London EC4V 3BJ. Jefferies International Limited and Jefferies Bache Limited are authorized and regulated by the Financial Services Authority. If you received this transmission in error please contact the sender. Jefferies archives and monitors outgoing and incoming e-mail. The contents of this email, including any attachments, are confidential to the ordinary user of the email address to which it was addressed. If you are not the addressee of this email you may not copy, forward, disclose or otherwise use it or any part of it in any form whatsoever. This email may be produced at the request of regulators or in connection with civil litigation. Jefferies accepts no liability for any errors or omissions arising as a result of transmission. Use by other than intended recipients is prohibited. In the United Kingdom, Jefferies operates as Jefferies Intemational Limited; registered in England: no. 1978621; registered office: Vintners Place, 68 Upper Thames Street, London EC4V 3BJ. Jefferies International Limited is authorised and regulated by the Financial Services Authority. This email and any files transmitted with it are confidential and intended only for the person or entity to which It is addressed. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this e-mail and any attachment(s) is strictly prohibited. If you have received this e-mail In error please immediately notify the sender at 203-302-7300 or by replying to this e-mail and delete the e-mail and any attachments) from your system. Nothing herein shall be construed as a financial promotion to any person or persons, or a solicitation or recommendation to buy or sell any security or other investment or to engage in any trading strategy. Information presented is from sources believed to be reliable, but is not guaranteed to be accurate or complete. This information should not be taken as an offer nor as a EFTA_R1_00880250 EFTA02185936 solicitation of an offer to buy or sell securities or other financial instruments. Email transmission cannot be guaranteed to be secure. timely or error free. Tourmaline Partners, LLC may review and store both incoming and outgoing messages. Use by other than the intended recipients is prohibited. EFTA_R1_00880251 EFTA02185937