What An Amazing Day

First I show you with a 90+% success rate in calling leaked earnings. Next, in my Wednesday night Trade Guild post, while everyone else was vacillating back and forth between options volume and all kinds of arguments, I went out and said "The jobs report will be bad, the market won't react well"

None of this is my expertise in anything other then reading 3C which follows the footprints of institutional money which was distributing in the run up to earnings so clearly, data is leaked everywhere; this market is manipulated from top to bottom.

Today I saw something I haven't seen since the Plunge Protection Team was active in the markets in late 2008-the only thing is the Fed didn't announce anything really. Clearly, this was not retail traders that saved this market today from total collapse. Money poured in and not quietly either, quite openly. The Vix even dropped today!

So what's going on? I don't know yet, but something is happening. While I warned in today's update that the divergence was on the  5 min chart and would probably be more then just a swing bounce that is normal, they even managed to move the 10 min chart. Look at this!

At 1:04 p.. I published the update below, where the white square is. I've never seen BOP at the bottom act so consistently, it's usually very spotty and that's why I don't use it much, but it went from clear selling to buying right around my update. And look at 3C in blue, a leading divergence on the 1 -min which led to my note.

The 5 min chart is even printing a leading divergence at the close!

The 10 min chart which was leading down made it to neutral or price confirmation.

The 15 min charts are mixed.

Here's the volume...

There was no need for 3C today, their actions weren't secretive-they were wide open in full view of the market. Institutional money-or someone, perhaps government, panicked today, but not in the way you think. they saw the sell-off, it was solid an they jumped right in and reversed it. Someone has a very real reason they didn't want this market down, at least not today.

Look at the economy-the jobs report, worse then expected. The GDP-a nightmare, earnings today from USPS, Housing, Retail Sales, Personal Income, Berkshire, AIG, BOEING-all horrible, yet someone jumped in there today and expended a lot of capital. Even with today's close and the afternoon rally-for every 2 stocks that closed up, 5 closed down, so there was some very specific, targeted investments today in the companies that have the heaviest weighting in the market averages. Close down volume up was the dominant P/V relationship.

This was no ordinary recovery in the market, not at all. Only open buying like that can move the 3C longer timeframes that quickly.

So what am I thinking.... I think the Fed made some phone calls today and made some promises about what they'd say or do at next week's policy meeting. This reminds me of some of the stories in Jesse Livermoore-Wold's Greatest Stock Trader when JP Morgan said he wouldn't do anything in the market on the long side until Jesse closed out his shorts, he reportedly "plead with him".

Now a few facts, before today their was a widespread belief that the market had been rallying this week-do you realize the SPY was up .08% between Monday and Thursday?

Obama is taking a huge hit and with him all the Democrats in the midterm elections. I think our October surprise will be coming next week. This means we are going to have to make some changes this week, I'm not sure exactly what or where, I have to think this through, figure out where the money went and what will have to be done to recoup it-those are the trades we'll have to look at.

I will say this, I think we're onto something. I think most traders are scratching their heads and saying "Oh well, I'll take it", but there's going to be a cost somewhere, there always is, now to figure this thing out. Guess what I'll be doing this weekend?