Tuesday, July 7, 2009

As Far as Market Internals are concerned

lets look at MR. NASTY who is living up to his name again.

Does this look like a hideous drop? If it looks bad to you, IMO, you have 20/20 vision

Now you can run the the scans and find that the Bearish ENGULFING and the BEARISH MACD cross-overs outnumber their bullish counterparts , 11 to 1. Kinda decisive.

Ya gotta wonder what is going bad and who knows it. Certainly the 130 $Bil Treas financing this week is not helping. I think it is the logical outcome of a market that has been boosted, and liquified until its like the Missouri River, too thick to drink and too thin to plow. If we refer to the liquidity chart, you see its hard for the S&P to stay up without continued prodding from liquidity injections.

Its pretty easy to see that the S&P runs out of steam when the acceleration of liquidity backs off. Thats gonna make it really hard to keep this market going up

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The "OTHER SHOE", replays last Autumn

The "panic buying" of US 30 Yr Bonds represents the extreme deflation scare of last year. By the beginning of September of last year, this buying had propelled the buying above the median line btwn recent highs and lows, and the acceleration lines embedded to the upside, pending equilibrium restoration. Note that is has done the same this year ALREADY. The consequences are dire, all except for sellers of US BONDS.

For those who'd care to participate as Beta participants in a SCAN, FILTER and SCREEN process for selecting Short Term Scalp candidates, you may register at

In any case, please stay aware, alert and poised.

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