Economist.com

Don't get too excited about some recent brighter economic news

IT HAS been a cheerful couple of days for those starved of bright economic news. Hopeful statistics have been trickling in from many parts of the world. On Friday May 29th revised first quarter GDP figures for America showed that the economy there had contracted slightly less than had earlier been reported. In addition durable-goods orders in the country rose by the most in 16 months. In Japan, factory output rose by 5.2% in April, the biggest monthly increase, in percentage terms, in over half a century. And in the first quarter India’s economy grew by a bullish 5.8%, compared with a year before, while South Korea’s industrial production continued to rise in April.

Even in gloomy Europe there are encouraging signs. Poland’s GDP ticked up by 0.8% in the first quarter, as did German private consumption (in the same period) and retail sales also grew, by 0.5%, in April. British consumer confidence remained steady in April, and house prices there rose both in March and May, according to one index.

For optimists, these are all signs that might point towards the beginning of the end of the “Great Recession”. Headline writers, and those who are urging stockmarkets to continue rising, will continue to talk of hopes of recovery. Yet a closer look at the detail of the latest figures suggests that hope springs eternal and will latch on to what it can—even when a more sober analysis would suggest there is a long way to go before recovery sets in.

Optimists make much of statistics that beat analysts’ expectations. But when a particular figure outdoes predictions it may be because those expectations were overly pessimistic, rather than a sign that something fundamental has changed for the better.

What, for instance, is the right reference point on the latest news on India's economy? Doomsters might fret that it has grown at the slowest quarterly pace in several years. Cheerleaders could rejoice that it has expanded slightly faster than most people had expected. Weary of negative news, the latter explanation is a tempting way to make sense of the numbers, but the gloomy view is equally valid.

Consider, too, the figures for consumer confidence in Britain. Although consumer gloom seems to have abated, the reported level of –27 is remarkably low by historical standards. If one takes into account reports that British consumers had been growing a bit more confident in recent months, the latest statistic could suggest a halt to a small rally, which is hardly something to cheer. This example highlights the difficulty of extrapolating from a single month or quarter of data, which can easily be skewed by one-off events such as a national holiday or sudden desperate measures by retailers to offload stock. Discerning whether a more sustained recovery might be under way takes, unsurprisingly, more data.

Thus pessimists, who are unconvinced that the worst is over for the world economy, have much to reinforce their dark mood. One particular concern is that the financial and credit problems at the root of the global recession have not been dealt with satisfactorily. Keiichiro Kobayashi, a Japanese economist, has looked back to Japan’s experience in the late 1990s and argues that unless the banks are fixed, a strong recovery for the world economy is impossible. Some disagree, suggesting that economic output can bounce back even before credit and financial markets are again healthy, if consumers get their wallets open. But even if this argument is compelling in some historical cases, this time it seems that household spending in many economies will remain weak because of high levels of debt.

One man who has made his name in recent years as a doom-monger, Nouriel Roubini, an economist at New York University, recently suggested that recovery from recession was far from imminent, arguing that “it's going to last another six to nine months”. It might not be surprising that he avoids a bullish prediction, but Mr Roubini goes one step further, noting that other economists are still suggesting a “doomsday” scenario, with continuing contraction for a long time to come, and thus even he could be considered as an optimist.

Expect Higher Prices

I expect higher prices here but how we get there is anyones guess. 945 should be a done deal and possible 987, yes 987 but I am always cautious here as the volume seem to be telling us this is no broad based rally indeed. Reason why I think higher here it is more or a timing factor than price. We have been correcting this move mostly in terms of time instead of price and that's why we are just chopping day in day out.
I think firmly this intermediate top will be reached withing the next 5-6 weeks, the lastest the week after July 4th and then we will more than likely retrace.
Lets see if we can find some decent plays when we break out of this chop to capitalize on. We have to be patient and not jump the gun.

Have a great weekend.

One more day

Last day of trading is tomorrow and looking at the charts we have gone no where this month. We have virtually just traded in a 40 point range on the S&P and that's unbelievable in deed. I hope we break this chop soon or I will be on the unemployment lines :) so come on big money break us !!!

Chart for all

I know I have posted this chart before but here it goes as I got some emails about the market. Nothing goes in a straight line but this is the overhaul target I think we will hit before it is all over. Time wise I think we will be in a bear market till at least 2011 if not 2013

Trend

This is the reason we always look back on the market behavior. Last post I noted that whenever we end the day bearish like yesterday the following day we head higher and the same thing happened today. Well this being a holiday shorten weekend and end of month I am more looking for an up end of the week as a sign of month end mark up.
June should set the tone and with almost most managers closing out their quarter at the end of June I believe the highs of this push up will be seen in June or the first 7 trading days of July.

Barcelona

Congrats to Barcelona on winning the UEFA Cup yesterday. Two very good goals indeed.
Well we consolidated yesterday and ended below the 900 area. I believe we mitch match around these areas till be break one way or another.
Not much to say as we are still chopping but one idea I see is NEM as a short, way over extended here like other stuff but I am not going all out short here till I see 945 on the S&P or a break of this range lower.
If today we continue down I think we are planning on a move lower but we have seen this scenario before were we close bearish and the following day there was no follow through on the downside. I wonder if we repeat today that trend or we get some legs down.
We will see


MARKETJEDI

Well Well

Well the plan for today was thrown out early when we got higher than expected consumer confidence numbers. I guess I am no longer a consumer because I don't have any confidence especially after hearing the tax payers will now be giving GM more money and own more than 70% of the company. I am very proud to say I am now a part owner of a automobile company :)
Presently we look like we are forming another triangle on the daily charts and for those trend line folks, it looks like 918 area should cap the triangle trendline. I put little faith in trendlines but you must use them to form triangles.
Let's see what they do tomorrow but I have to acknowledge what I hear today on cnbc about the big trading firms desk saying no action is going on for weeks with this upside. One reply for a trade desk today was it is so sloooooow, that they are fall asleep, that should tell you something about this price movement up it has no volume so no conviction and the big money is waiting for prices to go higher to short.
I have no idea how long we will trade in this low volume situation but when we do get the volume in it will more than likely be on the downside.
AAPL etc going back to new higher you better sell while the going is good for prices.

Some scenarios to consider here

- price breaks below 900 before testing 915 (very bearish)
- price consolidates near 915 (very bullish)
- price touches the 915 zone and gets slammed (very bearish)

Remember there is still an upside projection of 943. The fact the bears could not break 875 hard makes me think that projection is still active.

Also if any readers of the blog trade currencies please send me an email at marketjedi@gamil.com

Numbers to watch

Why I have not been posting alot of numbers iS becauSe the day ranges are so tight I can't get PRECISE projections to work with. The wider the ranges are the easier it is, as the narrow range is just sign of choppiness and sideways action but never the less I always try to use large time frames which are less distorted to see if there are any projections to look at.
Presently I have a downside projection of 847 on the S&P and an upside projection of 943 which is a gap fill and 'should' provide heavy resistance to get through at least on the first try.
The 847 level is very key because if we don't hold there we will definitely see 820/823 in a rush. My scenario here is this: if we see 847 before 943, 847/850 is a screaming buy!!!! Why? because unlike most other bears I don't believe we crash and burn so easily to see new lows, well not now but definitely later. So my scenario would be if we head down to this area and bounce we will make it up to the last swing high and head much higher and then complete this dreaded wave 4 (or 2 which some think it is). We will see soon enough.


MARKETJEDI

Downgrade of US credit

Last year I wrote about the consequence of the huge debt of the US. I said this is one of the reasons I believe in the not too distance future interest rates on bonds will have to rise substantially to continue to fund the deficit of the nation and if some of our biggest credits ie. China and Japan start shying away from our debt we will be in a economic peril much bigger that the credit crisis.
Last week we say the first sign of the collapse of the bonds which caused the commodities such as Gold and Oil to scream higher. Expect alot more of this in the future as the debt burden increases and countries move away from the dollar as their main asset, which they will.
The main talk last week why the markets pullback was the there is a possible downgrade coming on US bonds, will it happen or is it just speculation.

Past few weeks

The past few weeks have been the most difficult to trade and I think will go down in history are the most confusing times for the markets without a doubt. I have been dumbfounded of the last few weeks action although I did call this rally which I think has upside into July but thursday/ fridays action has put a light bulb over my head again.
What happened? The first clear sign I have seen in weeks that of a lower high pattern on the daily SPY(S&P500) chart. This to be is a signal of a more substantial pullback present and I have already step foot into some more puts at the 920 area and doubled up on ES puts there too and now averaging somewhere in the 866 level now. Do or die I stick by my calls and I will be looking to play some puts here as I believe we are coming close to the top of this rally especially in terms of time.
I hope you have a safe holidays and remember what this holiday stands for. I often remind myself that holidays stand for something than just a day off from work or school or to get gifts. Memorial day is for the soldiers who fought for whatever reason the country our tribute goes out to them.

Hmmmm

Things to think about- We gapped down and failed to fill the gap. Remember tomorrow is a friday before a long weekend and most will take the day off. I would love to see a test of the gap which stands @ 893 either overnight or early to see if we reject off it and rush to test the lows of the day. I would not expect much but if we grind nope which I would be surprised being a friday before an holiday look for some support to kick in around 875 then 869.
I am stuck in some put for June so I am hoping for a real pullback but I dont think we will get it tomorrow to scare the bulls just yet.

Remember the volume should be very light.

Oh the largest bank to fail to date was Bank united which was shut down today.

We will have alot more

BINGO!!

Hit that resistance mentioned yesterday @921/923 area. Now what is next???

Pre market

Looks like we will gap up but I expect us to fill the gap today and test that overnight lows of 902.50. Where we go today? I have no idea but if we break 902.50 on the downside I would be looking for a test of 893.

I will be here today

CHOPPINESS

OK, so what do we do here? Hell if I know! I think we continue to chop around in a range, a very tight one for a little bit and then decide which way we go. My guess is down, but I'm certainly not rushing out to short stuff arbitrarily. I'd rather buy dips until proven otherwise. 8500 continues to be the pivot, though, which is what my topside near term target has and remains, so I think we should get a real dip as the next big move. But, again, I think it prudent to let the market tip its hand before making a bit commitment of capital. I'd rather be safe then sorry.

Patience is key here


MARKETJEDI

7 AM

We are @ 915.75 as I write this @ 7AM. look for 921/923 for an entry to get into some puts on overstretched stuff.

Good Luck today

Tuesday

I will more than likely not be around tomorrow because of an family emergency but if I can I will be looking to buy some QID, IWM and some Puts June GS $140.
Hope to back on wednesday or maybe late tomorrow.

Since we had a move higher in price today I would expect us to consolidate for the better part of tomorrow before tipping our hands. If we gap up tomorrow into that 914 area it should provide a good risk reward for a short. If we gap up more than 2 points above it wait for the 921/923 area.

MARKETJEDI

Volume

Volume today is EXTREMELY low. Yes the market is up BUT up on no volume a very negative development.

Gary Shilling

For those who dont know who Gary Shilling is google his name. He has basically been one of the few who have predicted the movement in the market. He was just on Bloomberg stating his claim for S&P 600 will he continue to be right. Only time will tell.

Monday

Futures showing upside an hour and a half before the open. Lets see how we react to the start of the week after the first down week in 9 for the markets.

Prechter is my Favorite Technical Analyst

MAY 14, 2009NEW YORK (Reuters) - Longtime technical analyst Robert Prechter, who forecast the 1987 stock market crash, predicted this week that U.S. equities may plunge to half their lows hit in March as a deflationary depression bites.
Oil and U.S. Treasury bonds are also locked in long term bear markets, while corporate bond prices will plunge precipitously by next year as broad economy, banking system and company earnings sustain more damage from a financial crisis that's akin to the Great Depression, he said.
The U.S. S&P 500 stock index's rebound by nearly 40 percent since it sagged to a 12-year closing low of 676 points on March 9 is not sustainable, Prechter said in an interview with Reuters.
"It's not the start of a new bull market," said Prechter, chief executive at research company Elliott Wave International in Gainesville, Georgia. "Our models are (showing) right now that it is a much bigger bear market than most people realize, something along the lines of 1929-1932," he told Reuters in a wide ranging interview. "It's a very rare event," he added.
"I think the next leg down will be at least as severe if not more severe than what we just experienced. So you want to stay on the side of safety," he said.
As in his 2002 book "Conquer the Crash," which warned of the dangers of a U.S. debt bubble and deflationary depression, Prechter continues to advocate safer cash proxies such as Treasury bills.

SEVEN MORE YEARS?

Riskier assets such as commodities, corporate bonds, and stocks which are currently anticipating that the severe global economic downturn may be bottoming, are likely to have short lived intense rallies, but within an inexorable long-term decline that may last another seven years, he said.
As banks continue to accumulate losses and corporate earnings fall, "the difficulties will probably last through about 2016," he said. "There will be plenty of rallies along the way."
Oil may rally further from current levels just below $60 per barrel but the upside will be capped at about $80 per barrel as the commodity is locked in a long-term bear market, he said.
In July, U.S. crude oil hit a record peak above $147 per barrel and was just above $57 per barrel around noon on Thursday.
"Deflation is coming, it's going to lead to a depression. We're not at the bottom yet," Prechter said. "I think we are going to have bouts of deflation separated by recoveries."
Prechter also painted a bleak picture for commodities like silver and is largely unenthusiastic about gold, believing the precious metal made a major peak when it rose above $1,000 last year.
While gold may have already topped at above $1,000 an ounce in March 2008, Treasury bond prices are likely to fall in a long term bear market, with huge government debt issuance being the main catalyst.
The benchmark U.S. 10-year Treasury note yield, which moves inversely to its price, hit a five-decade low of 2.04 percent in mid-December.
"People got very enamored with bonds and very enamored with gold and I don't like to be invested in markets that are over subscribed," Prechter said.
"The Treasury (Department) has taken on so much bad debt" at a time tax receipts are falling, that "there will be a slow, but very steady change in the way people will view the U.S. government," said Prechter. As a result, investors in Treasury notes and bonds will ultimately demand higher yields, he said.
The U.S. central bank will not be able to control the government bond market and prevent yields from rising, regardless of how much money the Fed uses to buy Treasuries, he added.
Next year, U.S. corporate bond prices will probably fall below their extreme price lows of December during the market panic of 2008 when investors fled riskier assets, he said.
"Corporates in terms of price have the big wave down coming. This has been a prequel," Prechter said.
"Many corporations who (now) say we can borrow more money and take more risks: those are the ones who will get in trouble," he said. "Many municipalities will default," he added.

More Numbers to watch

I am getting some numbers down to 847/848 level also for the S&P. I knew I wrote 854 but I prefer to use my projections which are more accurate. Do we get there today Nope I dont think so but maybe next week. First support should be around the 871 area which is just 10 points lower.

Okie

So we have a 3 day losing stretch here in the markets. I would not get overly bearish yet as the bulls will NOT give up without a fight. More than likely we test 876.50 overnight or tomorrow and that might give us a bounce.
There is a possibility if the selling accelerates we can get down to the 854 level which was resistance on the upside, let's see what shakes.

876.50

Next level to watch on the S&P, maybe we hit it overnight but that's the number to watch

Bill Seidman Gone

Personally I think he was one of the only true guys in the financial arena. Goodbye Bill you will be missed by many.


MARKETJEDI- Prayers out to his family

AZO trade

Taking it off here +$5, this trade is like pulling teeth

Beautiful

So we bounced beautifully at the area I mentioned in the last post. Where do we go from here I think there is potential for us to head to 942 on the S&P and that's where I will begin my short campaign.

Tuesday

Well we are getting a continuation of yesterday move down. I am watching this level here 894-898 to see if the bulls get some guts to hold level or not. Very slow action here before 2pm but maybe it steps up closer to 3pm.
Right now I am neutral here with a longer term (2-3 days) biased lower.

Monday Morning

Seem like we are off to a very weak start. Lets see if we can head closer to the 900 level and bounce very good shot of it. One note here that is very important a couple week ago I think I mentioned that Berkshire Hathaway will not performing well in my analysis and it proved to be correct, this morning they announced their first quarterly losses in 8 years.

Gap Filled

Well we need like 3 more points to fill the gap on the S&P FROM January. The number is 934.70 and then I guess they will try and hit that 200 day moving average which stands around 952 area. After that folks it is anyone's guess but it would seem highly unlikely not to hit that level.
As I have been saying this corrective move have the possibility to take us higher and it has with my ultimate target in the 1054 area or in terms or time early July we will see. I think right now as how I see the price structure we should hit the 200EMA and then pullback before we go higher for an ultimate peak, again the real question is how deep will the pullback be.
Initial I was thinking a mid 700 level on the S&P but now I think it might be a mid 800 level around 830-850, it is almost impossible to trade this wave 4 or make clear sense of it since it the messiest in EW analysis so we will have to wait and see.


MARKETJEDI

Maybe Crazy

Maybe I am crazy or just stupid but the stress test just came out and people are jumping for joy because the banks need some more money to sure up their balance sheets.
Ok let me get this BAC has a market cap of about $70 Billion and they need $45 Billion more to sure up the balance sheet but the stock goes higher!!!!! Citibank the same!!! maybe my math is wrong but I think I can file to get some money from the TARP and have a credit score of 850. Geez how dumb are people to be so gullible to the factS staring in their faces. These were the same idiots who said housing would not spill over to the economy and all the banks were initially safe and that unemployment would remain in the low 5%.

Listen folks this is the last time I will say this all of this movement up is corrective move of the massive sell off we had for 18 months, NO market goes in a straight line BUT the trend is down, if you want to go start buying stock go ahead but you better exit before we reach the top of this wave. I have corrected my wave count of this being wave 4 to wave 2, that would mean we are going a lot lower since wave 3 is the sharpest and longest leg of the wave structure.
Lets see what they do tomorrow already Wells Fargo is getting a beating after hours with some of the other financials, while some are up.
I would love to see where we are in 18-24 months in my crystal ball but I guess we will just have to wait and see.


MARKETJEDI.

WHAT THE HECK

So let me get this right, banks need more money, Gm not paying back TARP funds, GMAC needs more funds BUT we are going higher. I have see this before telling you this they are sucking in the retailers so they will be left holding the bag once again.

Remember 1040/1054 was my level for this rally to go.

CITI needs more

Citibank needs 10 billions more as assess by the stress test

Wells Fargo- needs more

Wells Fargo needs $15 billion more based on the stress test. FOLKS the banks drama is not over

WILD before Open

Well what else is new. This is one CRAZY market, last night we were getting killed on the futures now we are up huge because the ADP report wasn't as bad as expected.

Geez I have no idea what is going on with all this wild movement. Then there is the BAC news that seem to be misleading in exactly what is needed. We wont know the true story til tomorrow.

BAC news - Stress Test

Rumors out that BAC need 34 billion to sure up its balance sheets according to the stress test. Also the rumor is that 10 of the 19 banks failed the stress test, oh boy.


please read.


http://online.wsj.com/article/SB124147831175584985.html

VIX

Caution here on the long side as the VIX has broken support showing major complacency. Just the kind of thing the shorts look for to bite the late longs in the butt.

Tuesday

I posted this morning but realized it didn't get put up, seem like it was sent to my draft folder. Anyways I was thinking we would get an non eventful day and we sure did. Folks the verdict is in the air as were we are going to go from here but seems liek the bulls are in control for the time being.
Again the full stress test verdict will be out on thursday so we MIGHT i am not sure get another contraction day tomorrow, we will see.

MARKETJEDI

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

900 Prints

S&P 900 here
just 7 weeks ago we were @ 666. What a crazy market

WOOOOOOOOOOOO

Bulls in charge here definitely. Although the volume is low especially friday's which was the lowest since the first of March we are still grinding up.
This is a dangerous place to initial trades with a lot of conflicting signals. My gut tells me they just want to close that gap left from January before they pull us down.

Weekend Update- May is at Hand

I always like to think in term of fundamentals. So what are the fundamentals of this bear market? For years, ever since WW II, Americans have been voracious buyers and consumers (much of it on credit). The Fed, free from the discipline of gold, could create money at will and it's been doing exactly that. Politicians want an ever-increasing Gross Domestic Product, and they have always encouraged spending. With its endless hunger for the good life, the US became buyer to the world. For decades, US consumers bought what they wanted through credit cards and debt. Debt piled up and asset prices inflated.

The rest of the world used the US to unload their goods on. Capitalism went global. Asia grew relatively rich selling every type of merchandise to Americans from refrigerators to toys to cars. Then in the 2000s via the Greenspan Fed, US housing evolved into a giant bubble. The price of housing in the US grew grotesque. Finally, housing toppled over. Real estate was the biggest asset in the nation, and with a collapse in the price of housing, deflation set in, unemployment sky-rocketed, and every business sought to reduce overhead the quick and easy way -- by laying off every worker they could.

The "death-spiral" took over. Frightened workers, those with and those without jobs, cut back on their buying, retail stores went bankrupt. Within a few months, contraction, deflation and unemployment became the watchwords of the day and the week and the month.

In stepped the Bernanke Fed and the Geithner Treasury. Next, I want to insert a few words from my favorite columnist, Caroline Baum of Bloomberg.

"The odds that 19 men and women (a.k.a.the Federal Open market committee) will be able to select the overnight interest rate that keeps the US economy growing at its potential in perpetuity are next to nil."

"There would be a huge outcry if the Fed set the price of oil or copper or soybeans. Yet, we accept the central bank as a price setter, a monopolist, when it comes to the interbank lending rate."

Now the Fed along with the Treasury, are trying to head-off a potential deflationary crash in asset values. They are doing it the same way they always do -- pump up the money supply, and keep interest rates low, down to zero if possible. This is laying the groundwork for the next bubble. Where the next bubble may lie is unknown. The next bubble could be the inflation of all assets. Or the next bubble could be -- simply inflation. But the Fed has a sure cure for inflation. The cure is rising interest rates and higher taxes. All of this is giving way to populist cries that "capitalism no longer works."

Right now the big question is -- can the Fed and the Treasury halt asset deflation, and can they halt the bear? The answer is out there, but not obvious yet. So far, the money managers have rushed into the market because, above all, they can not afford to miss a potential big advance in the market. I don't think the big individual investors and the institutions have come into the market. They're still weighing the situation and the risks. As for the retail buyers (the public), I suspect many have come back to the market, mostly in a vain effort to recoup some of their fearful losses.

Me, I go back to the Dow Theory axiom -- the primary trend of the market cannot be manipulated. On that basis, my belief is that this bear market will continue to its destination, regardless of all that the Fed and the Treasury have done to end it prematurely. In other words, I believe this bear market will fully express itself, no matter what. This means that the bear market will take longer and decline further than most people are envisioning. The surprise of this bear market will be its length and its depth and the amount of damage it will do.

Most bear markets take the form of a major decline, then a major upward correction, and finally an extended and destructive decline to final lows. The chart below shows the initial decline from the peak down to A marked on the chart. We are now in the second wave of the bear market, the upward corrective marked B on the chart -- to be followed by the final down-leg -- C. In all, an A-B-C bear market (this is in Elliott wave terms).



The A to B leg may be erratic since it is the corrective leg of the correction of the bear market. In other words, we are now in the (upward) corrective segment of the correction.

There are undoubtedly a lot of shorts locked into this market. Since the shorts like to exit the market on a decline, probably most of the shorts are frustrated since we have had no important decline since March 9. Thus, the shorts will slowly be forced to cover as this market works its way higher.

...........................................................

We may be seeing the end of the US auto industry. Chrysler has filed for bankruptcy. GM is now being run by the United Auto Workers and the US government, hardly an exciting combination. The deal. Let's say you own $220,000 of the old GM bonds. The government is "offering" to give 80% of the face value of your bonds to the UAW while giving you 45,000 shares of stock. At the same time, the government is offering stock to enough other people to dilute the value of those shares to about ten cents on the dollar or $4,500. By owning stock instead of bonds, you end up further back in the line for repayment in case GM files for bankruptcy. In all, not a juicy deal. Say "bye-bye" to the US auto industry.



Yesterday is the second day after the Dow broke out and confirmed the Transports. And it's a second disappointing day with the Dow barely higher both yesterday and today. Lowry's Selling Pressure Index is still far above their Buying Power Index, which means that any drop in Buying Power will send the market lower (since Selling Pressure dominates).

Yesterday the Dow was up just 3 points five minutes before the close. Desperate situation. Then in the last two minutes the Dow popped up 44 points! Who came in the last few minutes to "save" the Dow? Talk about manipulation, I think we're seeing it. Doesn't matter, the Dow will do what it has to do, regardless of last minute manipulations.

It's becoming obvious that the urge to buy is leaving the stock market. Only heavy Buying Power will now send the market higher. It seems that the initial (early) buyers have taken their positions. But there's no follow up.

Dollar and bonds were lower today with the commodity index sharply higher. All hints of forthcoming inflation -- all except gold with June gold down 3 dollars today. Gold should be near bottoming.

Nothing day

We did nothing all day today but chop around (where have I hear that before) and most of it was contributed to some countries having an holiday today. Today was hands down one of the most boring day and it was not a FED day.
Another bank was taking over by the FDIC today making the number of banks since the start of the crisis numbering almost 30 but on top of all of that the stress test would should be out on Monday May 4th is being pushed back. I mean can we say "What the heck is going on" but the word is already out that Citibank and Bank of America will need more monies under the stress test, nevertheless the banks are grind up till be get what and who is on shaky ground.
Here is a picture of the choppiness all day them bam in less than 10 minutes we covered almost 85% of todays range (Manipulation).
The S&P is basically flat for the week minus the last 10 minute manipulation.
Have a great weekend

Stress Test

Results moved from May 4 to May 7- Market in very very narrow range.

Computer problems

Been having some computer problems here- Trying to resolve them