We got nothing useful from Bernanke yesterday.
That’s not stopping the futures from running the Dow up 100 points off of yesterday’s bottom (8am) though because we’re back to that kind of BS market where you go long at the close (or after the close as was yesterday’s case) and then short after the morning pop because the data (reality) is TERRIBLE but the manipulation is so rampant that it’s reliable.
Fortunately, we have our 5% rule to guide us and we haven’t had a reason to change these charts in months as the market is obeying our range perfectly. Heck, these are the same lines we’ve been using since last November as the market is right where we predicted it would be for Q2 earnings.
Speaking of earnings: So far, so-so is the verdict with fairly uninspiring reports although JPM came in pretty well this morning, which suits us just fine because it’s one of the few specific financials we’re long on. Tomorrow morning we hear from C and FHN – that should be a lot more interesting than JPM’s report (5% beat).
We have a lot of data coming our way today, including the PPI, Retail Sales, Jobless Claims, Business Inventories, the Fed Balance sheet and the money supply along with day 2 of Bernanke’s BS on Capitol Hill – as if it really matters.
Our trading day is already pretty much done as the old 3am trade worked like a charm and I called a top for Members at 5:33, when oil futures (/CL) hit the $98.50 line (now $98), which is up $500 per contract already so a nice base to get the morning started. This is just our normal monthly cycle of sticking it the speculators over at the NYMEX so thanks again boys – we couldn’t do it without all your efforts to screw over the American public so – right back atcha!
Once again yesterday we had a net build in US petroleum inventories of a whopping 4.3 Million barrels, led by a huge build in distillates and STILL not one drop of oil has been removed from the SPR. Imports picked up by 90,000 barrels a day but we are still being short-shipped over 7 Million barrels a week so over 11M barrels a week of demand destruction in the US with oil averaging…