Breakdown

After a couple of days of failure at new highs and chop, markets sold off after a pretty sizeable surge at the open on good homes sales.

Looks like the yen may be bottoming here. Its tried to get firmly through 82.50 a couple of time the last week or so and can't. With record short interest I would watch it like a hawk.

Bonds are moving lower. 5 percent ten year is likely. The bund is leading and bonds following.

Had the birthday workout yesterday and feel shot today.

Selling looks like its drying up around 1515

Obviously more big buying in the small caps. They are playing catch up to the dow. MA continues to rule everything and nothing seems to be coming out of china. Or should I say that we will be allowed to borrow money forever.

AAPL is a on tear. Now around 115. The money supply around the world is growing by leaps and bounds.

Feeling better

I finally got back into the saddle again today and made some $. I needed to take a break because I was not in sync with the markets.

I've mistrusted the rally and not done well the last month and a half. I killed in february march, but when we went back into up everyday I couldn't adjust. Today I showed good discpline and shorted when we broke down in the morning. Covered when MD selling dried up around at 1503 on the first trip.

I ugraded to the odds maker and will now look to fade the ranges

M&A continues

M&A news continues to power the markets higher. Today the NY post reports that MSFT might be a buyer for YHOO. Interesting because YHOO has a market cap of 50 billion which makes it a sizeable deal.

The interest rate environment remains very helpful. Clearly the ROW is still adding to US reserves at a substantial pace.

I expect the markets to trade down at somepoint today. Jason says gaps on NFP havent been great buys. I am relctant to hop on until I start to see someone offload 30,000 minis in under 10 minutes.

Trade has been confined to the value areas for the most part. Trade ideas isnt as lively as it has been in days past.

Other interesting stories is HOV which is still having huge problems in housing. The amazing thing about housing is how bad it is even though liquidity couldnt possibly be better.

Downside follow through

News of the day is Rupert Murdochs bid for dow jones. Blah. The PE train moves on and seems to be picking up speed. Money is everywhere.

Markets are mixed. The small caps have had decent follow through, but ar catching a bid the tick is hitting a thousand multiple times and its not going into the sp.

I guess two days is all the dip buyers can handle. Nevertheless, the most bullish faze of this rally is over. Housing is still a total joke.