Some of the Nasty Rumors and News...

The US Senate has enough votes to defeat a Republican House Continuing Resolution to fund the government past the end of the Sept 30th fiscal year end. The Republicans seem to have put a poison pill in the bill and Democrats want it defeated in the Senate, which would shut the government down, they are also on recess next week so it may be a shut down of some importance.

Germany says Greek second round bailout may need to be revised.
From the German Finance Minister:

• GERMAN FINANCE MINISTER: MAY NEED TO REVISE 2ND GREEK BAILOUT - Dow Jones
• GERMAN FINANCE MINISTER: DOES NOT MAKE SENSE TO SPECULATE ABOUT NECESSITY FOR ADDITIONAL DECISIONS ON GREECE: RTRS
• GERMAN FINANCE MINISTER: THE RECAPITALIZATION OF EUROPEAN BANKS IS NOT A MATTER FOR THE ECB BUT FOR MEMBER STATES

US 30 year bond...

As the Fed unveiled operation twist and allocated the bulk of its buying in the 20-30 year bonds as 3C predicted, comparisons are being made to Black Monday of 1987 as the 30 year drops over 55 basis points this week. However, considering the Fed just announced twist, buying in the 30 year would be expected and I personally don't think it s a fair comparison to 1987 at all being there was no Federal Reserve intervention in Twisting the yield curve, still the panic head line has taken hold.

The Solyndra Scandal is getting more headlines as Solyndra executives have plead the 5th. Talk is already circulating of an Obama impeachment. This is the Solar Panel maker that was the recipient of a very large government guaranteed loan that seems to have been improperly given or at least was rushed ,through pressure from the Obama administration, the company then went bankrupt.

There are rumors now that Germany has more then $5 Trillion Euros in hidden debt.

European Banks are starting to say that the expected Greek bond default haircut of 21% could be much higher, some saying 50-60%.

In Greece it seems the Bond Exchange offer is now a dead issue. There are rumors Greece is preparing for a default with 50% haircuts for Greek bondholders, they of course deny it.

GLD is down on a rumor that a large hedge fund that is down 50% on the year may have to sell their only profitable position which is GLD to meet redemptions, this seems to me to be a very obvious finger point to Paulson.

On the other side, last night the G-20 issued a statement of solidarity in keeping financial stability.

Lots to mull over, but as you do, remember that most of these things can't be taken at face value alone. Whenever a bank is involved or Wall Street, there's almost always an agenda.

BAC as an example...

 BAC 1 min relative negative which could just be a consolidation or a pullback.

 Same on the 5 min chart.

 The 10 min above and 15 min below are very strong leading positive divergences.

However, as we see bigger bases form, the accumulation is always near the bottom of a trading range, so if BA were to pullback to the $6.00 area it is likely that it would start accumulating again and we would be talking about a bigger base capable of supporting a bigger move up, this is why I want to pat attention to these short term charts.

Market Update

There's lots of bad rumors going around today, a lot of ugly comparisons and such. This is why I try not to read the financials too much.

 DIA 1 min, everything looks fine, a leading positive divergence in one of the stronger looking averages.

 DIA 5 min is lagging a bit, but that's also partly because there was such a strong leading positive yesterday, I'll give it some time to see what it does.

 The 10 min chart is leading positive in the DIA

 As is the 15 min.

IWM 1 min have a slight negative divergence

 There's the same thing on the IWM 5 min as I described on the DIA 5 min chart.

 The 10 min is leading positive.

 The 15 min is lagging a bit too, it's not negative, but sort of like the 5 min chart.

So far the QQQ 1 min is negative looking.

 The 5 min is turning toward in line and positive leading.

 QQQ 10 min is positive leading as well.

 And the 15 min is positive and about in line.

 The SPY 1 min is also lagging.

 The 5 min is leading positive.

 The 10 min is about in line, close to going leading positive.

And the 15 min is leading positive.

I want to keep an eye on the short term charts as there's a chance this could turn in to a bigger base.

GS Update

 GS long term 5 min 3C depth chart.

 GS 1 min leading positive

 GS 5 min leading positive

 GS 15 min relative positive

GS 30 min relative positive

Still looking pretty good in the short term after a long time of looking really bad.

First resistance

Traders will look for resistance/support at not only yesterday's close, but in the area of yesterday's downtrend line and Wall Street will usually oblige them, so watch for volatility in this area, especially in early morning trade.

FX

Remember this morning's FX post showing the Euro under accumulation?

Take a look at the Euro now.

Here's the Euro rallying from the time the post was written. This is stock market positive, but as always with FX, a lot can change overnight.

Not a bad close

Most people wouldn't look at it that way, but we don't see the market the way most people do.

 DIA makes a new 1 min leading high

 Also a new 10 min leading high.

 IWM makes a new 10 min leading high

 QQQ breaks the day's downtrend line and makes a new 10 min leading high, the Q's shaped up in the afternoon quite a bit.

 QQQ also makes a new 15 min leading high on the day.

 SPY breaks the day's downtrend and makes a new leading 5 min high.

SPY also makes a new leading 15 min high.

TICK Data

The Tick chart showed earlier an opportunity to pick up shares on the cheap, it's starting to break that down channel now.

QQQ/TQQQ

I'm liking the looks of the QQQ a lot better then earlier.

 QQQ 10 min leading positive.

QQQ 15 min just entering leading positive.

I personally would use TQQQ for the leverage.

BAC Trade (long)

I was asked about BAC and believe it or not, short term it looks pretty good.

 Both the 1 and 10 min are leading

And the 15 min is pretty darn close.