Unbelievable….really

If you told me this morning that the Dow was going to end up 70+ points, I would have called you an ass. Turns out it was me…I mean the ass part. Unbelievable that the Dow made a 120 point u-turn! The S&P had a similar strange day. GS made a crazy u-turn also. The Russell had some semblance of sanity closing in the red.

The big trading volume was still on the downside, as was the advance/decline line and the A/D volume. The new 52-week highs today was way low for all indexes, turning both the 5-day and 10-day moving averages downward. So we had the lowest number of new highs and the highest number of new lows. Click on the chart to see it bigger.

I took profits from TZA and also the SPY puts I was still carrying. I’m still holding some TZA because I was expecting some more downside follow-thru! Again, the move up was uncalled for.

This week and next are the busiest earnings reporting weeks and this week has a lot of biggies, IBM today, AAPL and GS tomorrow. IBM had a good report but sold off afterwards. As I had mentioned before, I think the good reports are priced in so either good or bad they selloff. Here’s more good news: U.S. Bankruptcies Spike 35% in One Month

The details are an even clearer warning sign that both the “bottom” in the U.S. housing market, and the “job growth” reported by the Bureau of Labor Propaganda are nothing but the “smoke and mirrors” of private sector shills, and/or government propagandists – dutifully reported by the mainstream media-parrots.

Gives you the warm and fuzzies, don’t it?