F_E_D's Beige Book

The release at 2 p.m. has a lot of "moderate" or lukewarm language.

• *FED: BEIGE BOOK BASED ON INFORMATION GOTTEN ON OR BEFORE MAY 24
• *FED SAYS GROWTH WAS `MODEST TO MODERATE' ACROSS MOST OF U.S.
• *FED: HOUSING INCREASED AT `MODERATE TO STRONG PACE' ACROSS U.S.

That last one is a doozy, from Mortgage applications and lumber futures, we all know housing is about to collapse, the only thing holding it up so far is the fact that BlackRock hasn't joined many of its peers in liquidating its real estate portfolio (rentals).

In any case, I'm waiting for my Screen Capture to reload. 

There's a large inverse H&S price pattern and real or not (confirmed by volume), it is NOT what I want to see as it will send more shorts covering too early. So a little downdraft in to the afternoon is fine with me AS LONG AS WE GET SOMETHING LIKE A GAP UP IN THE A.M.

The point is, the shorts are the rocket fuel, their covering is the burning of that fuel, we want it in one big blast, not in little steps here and there.

So I'm going to check the 3C charts and make sure everything looks right, but at this point I'd rather see that Inverse H&S in the SPY be discredited than gain some upside from here, when looking at the picture and the anticipated move above the triangle, I don't mind waiting until the morning if it's going to fire off a lot stronger.

I'll take a look around, as soon as the screen capture is reloaded I'll put up some posts, but so far we have some soaring positives and that Inverse H&S in the SPY looks good to me at this point because shorts are going to look at it and say, "Ah, there's a failed bottom", which keeps them in.

Ideally we gap up in the a.m. and force them to try to all fit through the same small door all at once.