WELL WELL WELL, what do we have here.. another ridiculous out of nowhere rally in the SPY while the volume on the day was the lowest. This provides further examples of how the algo i mentioned yesterday operates. I do not have the green prints which started the rally because they were so fast it was impossible to screen grab them. I did grab the subsequent prints which were dumping the shares which lifted us off the 109.40 level. I agree it was a potential break out level, though without the "push" there is no way in hell we could have rocketed like this. Both the futures and the Cash were being pushing with vigor.

The climax was a 4 million share candle which formed in under 30 seconds. After that point traded sideways until 3:05 then boom more buy programs hit the market, with the buying simply not stopping. !NOT STOPPING. What is the catalyst, a ? Come on, who are you fooling, this market is the biggest lie I and many other esteemed intelligent market operators have ever seen.

I stated on twitter today, if we close green i am . I kinda hoped it would happen, looks like we are not going green..

One of three key market participants on the New York Stock Exchange (NYSE). Supplemental Liquidity Providers (SLPs) are market participants that use sophisticated high-speed computers and algorithms to create high volume on exchanges in order to add liquidity to the markets. As an incentive for providing liquidity, the exchange pays the SLP a rebate or fee, which was 0.15 cents as of 2009 Now read on.


















I am growing more and more tired of seeing what appears to be a very "helpful" algorithm running in the SPY. I am using the term "helpful" very lightly. I relate this algorithm to a jumper cable, your car will run once it takes the jump if your battery is running low right?

Now lets say volume our current market is equivalent to a discharged but not quiet dead battery. Symptoms of the market being a "dead battery" are sluggish movement through key pivot levels on a daily 1 min chart, along with violent price spikes within the 1 min candle.

So how do you fix a market which does not have the Umph it needs to remain liquid while not remaining flat all day after the initial 30 min opening volatility? A quant algo of course!

Well, ZeroHedge put out a great article this morning highlighting an report out by Goldman Sachs on hedge fund holdings (as of December 31, 1009). There is a lot of data hidden within this report, you must know which morsels to focus on though. I personally focus on the Top 50 page, which highlights the stocks hedge funds are all over. It is no surprise Apple is at the top of the list with 83 funds all dipping into the honey pot. *And you wondered why Apple is so hard to trade intra-day, you are up against a very formidable opponent(s).

CHART UPDATE: top chart is newer
Today we had a very similar open in relation to last weeks price action, *gap up, then slow gap fill (fade) followed by a push below the opening range. These moves are hard to get involved with in my opinion because the range is so tight, you either have to be super quick and or very risk tolerant because you are either gonna be sorta right, or very wrong. The best trade today was letting off the gas waiting for a clear trend to develop. Though as you can see from the chart above a trend never really showed itself. You can argue the trend is down, but both my shorts and longs were not paying.

This article from a few days ago, but still worth getting out there. With the US debt ceiling raised is the Fed going to start printing new T bill? If bills will not be used to finances government operations what is the real reason? You can draw you own conclusions after reading the commentary below by Morgan Stanley.

*While you are reading you should listen to this track it gets you pumped...

Granted i am sure you all know my political affiliations based on my ramblings, i was/am still shocked Senator Evan Bayh is not going to seek a third term. Being originally from Indiana i am very familiar with the politics of the area and specifically Bayh. He seems very level headed for a lib, but also beyond the aisle he in my opinion is quite capable of making smart life decisions. His decision to retire from office seems to be based on fairly solid facts most everyone can support, such as, "the current challenging environment" in Congress. Simply put, nothing can be agreed upon in both sides of the hill, nothing gets done because of the bipartisanship. I think it is a crock of shit, we need to be progressive, lets get one side of the asile to take charge and lead by example. Let the bigger man show his cards, Bayh changing the momentum could be the trigger for a new wave of political changes, potentially for the better.

This morning we had a weak tape,(futures down, market traded down from gap price) I did not read much into the down open because we have been up triple digits the past two trading days. I approached shorts with caution because we gapped down and sold off rather fast on a steeper than average slope. *Shorting an already gap down market is never a high probability trade. Lately i have been waiting for a clear trend to develop before jumping into the deep end. Today was a great example of patience, UNLESS you are an extremely fast scalper, you should practice patience. IF you are a fast scalper you could have played the market short then long, but if you were patient, like myself, you would have seen the market was giving us signals it was going higher.

With the Greece uncertanty the S&P500 will be under increased pressue to the downside. In my opinion traders in the US really do not have a reason to buy stocks based on a bailout of Greece. From what i am hearing the bailout might not happen because there is not a EMU bailout clause.

First, lets start off with a link: TrimTabs CEO speaking on Bloomberg about US government cash involved in the recent market rally. Let this video's theme (propping, disguising) carry through as you continue reading...




Lets face it maybe the world should just start over, no problems have been solved only patched. The developing world has followed the "United States plan for success", which has recently as you know shown quiet a bit of holes! The world wanted to play our game, they wanted a piece of the action, the US being capitalists said, "Pay me, ill show you how we did it." These salesmen of the "United States plan for success" never told their developing country clients, "We have no idea what the hell we are doing, and on top we have have no exit plan." As soon as SHTF last fall the salesmen turned their backs on these countries, you really think Greece was their only client? NO, we failed they eventually fail. It is our MODEL, we have the instruction book right?!

The open today was quiet with only a few names standing out. After the moves in the market late last week i am fully expecting a boring flat day today. As you can see we are literally flat on the day as of 1:35. The market needs time to digest, i still think we move lower over time. Notice how down candles are quicker and more violent then the steady slow up candles.