NEGATIVE 1 MIN DIVERGENCES

Both the DIA and SPY are close enough to call negative divergences.

What's really amazingly scary this a.m. is the economic numbers out. As I mentioned way back when we had our last GDP, a trend in economics is difficult to reverse once it has momentum, and the GDP downward spiral has momentum.

The trade deficit came in 2.3 billion worse then expected which makes this one of the worst numbers we have seen in years. No wonder there's a salvo of currency battles.

The fact the deficit is so bad, will certainly revise the Q3 GDP lower.

PPI ca,e in at .4% on expectations of .1%-remember I told you that capacity utilization was trending up and this would affect inflation at some point-some point in now. As expected, the majority of the increase was due to the horrible grains season and higher oil prices which were bound to hit consumers at the pump.

Finally jobless claims up from 445k to 462k.

This might make for a decent argument for QE2 if this were a vacuum, but it's not. Fauxclosure gate is gaining momentum everyday. Write downs are coming, reserves are going to be increased for banks because of this and there are several root that will fan out from that mess. The involuntary inflation, although the Fed wanted some inflation, is not the controlled type they were shooting for so this has got to be causing some second guessing as the more the Fed prints, the more inflation we'll see.

All in all, today was not a god day of eco releases.