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A lot happening and none of it is good

|Includes: International Business Machines Corporation (IBM), INTC, SDS, SKF

I don't see how ultra extreme fiscal policy and ultra extreme monetary policy = a good economy or stock market over the intermediate and longer term time frame.   If it did, we should try it more often.  A nursery rhyme comes to mind -  "All the kings horses and all the kings men could not put humpty dumpty together again".  

I also think we just hit the intermediate time frame at 1150 S&P and this market has a large retracement ahead of it as the idea of deflation takes hold for awhile.

I am net short the market through ultrashort SP500 symbol SDS, and ultrashort financials SKF.  I am long the dollar through a profunds fund. 

If you follow this blog you know I'm interested in SYNA.  it was UP 77 cents today in the regular session!  But after the market closed it reported Q2 profit fell 20% and the stock is down 12% in after hours trading. 

I got lucky as I sold it earlier this week.  I was just too negative on the market to be long a lot of equities.  Technology had been one of the strongest parts of the market and even those companies with apparently decent reports have traded much lower.  INTC and IBM are examples.  When the strongest groups in the market suddenly aren't, you know trouble is coming.   Tomorrow might make lower lows but a counter-trend rally isn't much more than a trading day away in any case.

But have you noticed there has been larger volume on down days for a couple months.  And as the market ground its way higher overall volume declined steadily.  Also, various market bullish sentiment indicators ( contrary indicators)hit many multi-year extremes.  This correction was overdue. 

TROUBLE! - trouble, trouble trouble ....

Disclosure: long SDS, long SKF