Bounce setting up intraday

 QQQQ 1

SPY 1

The IWM shows the same, the DIA has a smaller divergence. The 5 min charts are mixed, so I'm guessing this is a fresh start and we'll see if there's bleed through to the 5 min which would suggest a bigger, more important bounce then just this intraday one

Fed Cancels POMO

Now this is interesting. Why would they do that? Maybe because POMO is meant to manipulate the market higher and today would be a complete waste of money considering possible catastrophic events in Japan. Thank the higher power that my friend's brother got out of Japan yesterday with his family. They had about enough luggage for a family of four, for a weekend trip to Disney so they were pretty keen on getting out of there quick and this is one smart guy who is very well informed.

Is this Surreal?

Canadian Nuclear Power Plant Leaking

And Here's the Reason

Story Here

TMV Follow Up

Yesterday I issued a trade alert for TMV (short), there were other ETFs you could use as well. Right now we are seeing some pretty good downside action.

Market Update

Only the Q's and IWM showed distribution, something may be going on in the news, I need to check.

QQQQ 1 min

IWM 1 min

USO

Here's another one 3C called right at the bottom yesterday.

Our track record on USO lately (one of the more difficult stocks to analyze because of world events) has been flawless from calling the upside move, to trailing a stop and getting stopped out a day before the reversal to catching yesterday's bottom.

However, there's a more important lesson here. You hear me talk a lot about the accumulation/distribution cycle. There have been many events the past several days that normally would have shot USO up, but once smart money takes a position, they do everything they can-despite world events that run counter to their position, to see that position through. You can see how much firepower and support they will lend to their positions, despite world events that would move against them. That cycle I talk about is very strong and pretty reliable. Our view was after USO hit its target on the downside, which it did yesterday, it would move up, probably surpassing the last high near $42.50. We have at least 4 days of accumulation in the cycle, so be patient with USO, it should keep moving higher this week and into next week.

Slight positive divergences in the market

There have been two small ones at 9:40 and 9:50. We'll see if they can muster anything, yesterday for most of the day, it seemed like we'd see some strength today until the market went negative at 3 pm, we'll see.

UUP Update

Here's the Post/Trade Idea for UUP from yesterday

So far, it's working out and yesterday was a prime entry for the trade.

 The entry area in red

Here's one of several positive divergences that made the dollar trade look appealing.

We aren't that far from support so I think an entry here is still a viable option.

Data is not good

This morning's PPI showed, as we have known for sometime, that input costs are hitting or close to hitting record highs. Food costs are the highest is 36 years. Housing starts were also a major disappointment, all in all, not good, not good at all.

The Market is continuing the slide that we witnessed late yesterday with a negative divergence around 3 p.m., however, before that we had seen some accumulation for most of the day, whether this is a morning blip or a lower close remains to be seen. We should see some changes around 11 a.m. after they get done screwing the retail traders that left limit orders in place.