Educational use only. Never intended as advice.

First, I want to comment that more than anything else, Wall Street is about pure unadulterated promotion. Reporting about Wall Street tends to parallel the Street's message. Specifically, on the Yahoo portfolio site today, for the whole day, the lead headline is 'Productivity Number Soars'. Is this continuous news or continuous hype? It's the latter, and it's either 1) biased or 2) bought and paid news.

Lest we forget, it's not the news, it's the reaction. We had yesterday's late reversal, and today's action wasn't inspiring, unless you had some energy or gold shares. I was fortunate enough to have both and hope that I can remain in sync with the market using my combinations of 'tells' and 'dynamics'. Breadth was poor today, and neither the 'betas' or the 'financials' got much love today. I sold out my RKH puts prematurely at a loss, but had theta decay staring me in the puss.

Count me in the Richard Russell camp as believing that what is real and what is reported are two different species. The world has producers and savers (Chindia) and consumers and debtors (the US). We have individual debt (including mortgage debt), federal government debt up the ying-yang including 'off-balance sheet debt', and major issues regarding state and local debt and pension obligations. Debt matters, as Warren Buffett says, "a dagger aimed directly at the heart of a corporation", only the corporation is US.

Dynamics:

TRIN5 (0.97) neutral
Stochastics oversold: NDX (9%), SPX (10%)
VXO: 11.84 with a ten day average of 11.16
SPX with the reversal 'tail' up...with obvious support around 1240.







ETFs oversold:

BBH 207-202.65
HHH 68.40--66.89
IYR 65.95-64.73
RKH 141.85-139.85
UTH 114.70-112.84


ETF NR7: (volatility decrease, possible expansion)

GLD 51.50-51.10
SMH 38.62-38.08
TLT 89.91-89.52

Proprietary 'Stretch' stocks: (never advice)

AAPL 74.46-73.12
MNST 41.41-40.64
MON 78.17-76.82

NI 21.48-21.20
PMTC 5.81-5.72
JNJ 60.45-59.76
GD 113.35-110.50

"Welcome to the jungle."

Good trading and great risk management.