Uncle buck, overbought bearish divergences forming, however due to fundamnetals watch for a short pullback then higher (JMHO) Keep your eye on Spain and Portugal (JMHO) CHUBBIE

http://stockcharts.com/h-sc/ui?s=$USD&p=D&b=5&g=0&id=p12787236124

Doji, http://stockcharts.com/h-sc/ui?s=$INDU&p=D&b=5&g=0&id=p56798560570

OT: "The Bob Hope Economy".
I must say, I was expecting more selling today than we have seen so far. Back in the day, comedian Bob Hope used to have a joke that went something like this, " Banks are a place that will lend you money, if you can prove you really don't need the money".
Mr. Hope was referring the need for the borrower to show the ability to repay the loan and offer forms of collateral.Now, after years of departing from more astringent banking terms we are returning to standards that will crimp bank's profit. Last nights news from Gentle Ben, should have served as a reminder to Wall Street that banks face a bigger challenge in turning a profit going forward.(JMHO) GOOD LUCK IN THE BOB HOPE ECONOMY!, CHUBBIE

I'm aware of why the dollar is where it is. Read my previous posts, an orderly devaluation of the dollar is essential. (JMHO) CHUBBIE

OT: So why are markets betting on inflation? Are they afraid of Ben Bernanke and The Federal Reserve? No, that is a misconception, they are astute banker/economists and know its about time to stop. The danger now comes from politicians who want to get elected. They will gleefully promise the American people all the economic stimulus they want. Anyone listen to the State Of The Union? What you I believe you will hear in the coming months is a divergence between the country's most prominent economists and the politicians trying to buy their way into office. (JMHO) CHUBBIE

Uncle Buck still raining on the parade, but overbought, in heavy resistance now, http://stockcharts.com/h-sc/ui?s=$USD&p=D&b=5&g=0&id=p53901011041

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqZ4G7to5Xu0&pos=4

http://stockcharts.com/webcgi/Pnf.asp?S=$XOI

http://stockcharts.com/def/servlet/SC.pnf?c=$XAU,P&listNum=

I'd be careful out there, materials are leading on inflation fears and without that orderly devaluation of Uncle Buck being possible we could be in big trouble until that orderly devaluation seems once again possible. Watch your support levels for a breach. (JMHO) CHUBBIE

When companys deleverage or pay off debt the threat of future growth becomes aND issue as leveraging is the means to achive growth, but we have been deleveraging for well over a year now At the macro level, what is happening is that the data trumps gentle ben's insistance rates won't rise and as I said before an orderly devaluation of the U.S dollar is imperative to an economic recovery.
The rise in the dollar seems dramtic but only because it is at such dramatically oversold levels on the charts, the dollar isn't close to being above its breakdown level or being back into x's at this time, http://stockcharts.com/def/servlet/SC.pnf?c=$USD,P&listNum=

http://www.investopedia.com/terms/d/deleverage.asp

Your a little a late on that one. Traders were waiting for that pattern to pay off with March of '07 as the date of the big decline. Oct, '07 was the top so they weren't too far off.I started following that in '05 . (JMHO) CHUBBIE

claims. bad news, gentle Ben's on hold, futures got ramped. 9eom)

OT: Trend1. keep in mind the U.S. dollar is the preferred carry trade, also here's a blast from the past gentle ben will frown on,
Americans headed back to their favorite ATM machine, their home,
http://finance.yahoo.com/news/US-mortgage-applications-rb-882676034.html?x=0&sec=topStories&pos=6&asset=&ccode=

I was referring to the Federal funds rate, which is only one of the tools at the Fed's disposal Bernanke has gone on record as being concerned of 'global imbalances" as a result of the near zero interest rate policy.
many get the impression he will raise rates as soon as possible.this will make to more difficult to continue the orderly devaluation of the dollar.(JMHO) CHUBBIE

OT:Ok, there's the bad news. War in the forex markets will provide the key to the possibility of a sustainable U.S. recovery. Good news is bad news, this means for the enormous Federal Govt. debt to remain sustainable the Fed will have to keep rates low for quite awhile. rule number one, you always want to pay off debt with weak currency rather than strong currency. The U.S dollar will have to resume and orderly decline to make this possible.In the nightmare scenario, and I'm not saying this will happen, but it is possible our creditors will dump U.S. treasurys if the dollar does not resume its downtrend. Asian currencys are currently undervalued so they will have to be forced to appreciate.(revaluation of the renmindi has already caused strong disagreement between the Obama Administration and Beijing).How about the Euro?? The EU can not stand to let the Euro keep appreciating, it would be a death sentence for their economy.Keep watching the forex markets as a prelude to major disruptions in the equitys and bonds markets. Where there's smoke there's fire.(JMHO) CHUBBIE

http://stockcharts.com/h-sc/ui?s=$USD&p=D&b=5&g=0&id=p66601522331

Trannies, still bullish after the quad breakout, can't get bearish until they start to reverse and they hardly budged today,
http://stockcharts.com/webcgi/Pnf.asp?S=$tran&N=A&C=2

important, watch the NYA, if it prints the breakdown, could bring on more selling, http://stockcharts.com/webcgi/Pnf.asp?S=$NYA

at bullish support line, will it hold? http://stockcharts.com/webcgi/Pnf.asp?S=$XAU

OT: so what happened once again? they sold it.At the very begining of a rate increase cycle bad news is good news, cuz it means the Fed is on sold. This week the market got good news and all it did was add uncertainty. Will the fed cut rates too soon or stay the course?? (JMHO) CHUBBIE

broke to a new high on PNF 2 days ago, now two consecutive failures off the new high,bulls might start to feel a little trapped for buying a new high, http://stockcharts.com/def/servlet/SC.pnf?c=$INDU,P&listNum=

OT: the service number was pretty bad, we now have a service oriented economy,number is a better indicator than manu. (JMHO) CHUBBIE

Numerous Goldman employees were quoted as saying, "ok, Barrack, you can take my exorbitant year end bonus after you pry my Smith and Wesson from my cold dead fingers" (JMHO) CHUBBIE

OT: And the award for "World's most paranoid and delusional
Bank" goes to Goldman Sachs, http://www.bloomberg.com/apps/news?pid=20601039&sid=ahD2WoDAL9h0

roll-over candidate (JMHO); http://stockcharts.com/def/servlet/SC.pnf?c=AMZN,P&listNum=

banks already are in bull trap status,
http://stockcharts.com/webcgi/Pnf.asp?S=$BKX

http://stockcharts.com/def/servlet/SC.pnf?c=$BPCOMPQ,P&listNum=

Look at BP charts, already off highs looking like they are rolling over. (JMHO) CHUBBIE

Two things to keep in mind, and be careful, we have a failed triple top on the trannies, and if oil , which has hit a new high on this chart immediately reverses to 0's, it's a bull trap formation, http://stockcharts.com/def/servlet/SC.pnf?c=OIL,P&listNum=

Time to ring the bell, Ding! Ding! Ding. (JMHO)

OT:Just a word to the wise, when playing real estate ETF's it is almost impossible to separate commercial from residential, there might be exceptions, but in most of them the commerical makes up the dominant positions in the portfolio. So, if it looks like commercial is going to continue down and possibly be the next contagion to strike the markets, these ETF'swill get hammered. Conversely, if you are short these ETF's and the Government does come to the rescue,you could really see a short squeeze regardless of residential. (JMHO) CHUBBIE

http://www.bloomberg.com/apps/news?pid=20601103&sid=aRHhJ.JDirJM

OT:no sht sherlock, http://www.bloomberg.com/apps/news?pid=20601087&sid=aG8YOdEMfVRE&pos=1

Hope nobody sees that fiasco as a sustainable alternative. (JMHO)

http://www.latimes.com/business/la-fi-state-tax31-2009oct31,0,2028140.story?track=rss

OT:key word now is "sustainable", throwing over a billion dolllars to achieve short term growth is unacceptable. Today the Govt. stated that they created over 600k jobs, unfortunately, the cost for easch one of those jobs is $234k, this policy is totally unsustainable.
The biggest problem going forward now is missteps by the govt. causing excessive dollar devaluation and possibly the nightmare scenario of capital flight.I believe this is what Roubini was referring to. (JMHO) CHUBBIE

http://leavittbrothers.com/blog/?p=2157