Just to add insult to injure, Apart posted this hot off of the press story from Reuters right before the close in our chat-room;
Fed's Hoenig says QE3 "may get discussed"-MNSI
Feb 1 (Reuters) - The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data prove weaker than policymakers expect, Kansas City Fed President Thomas Hoenig said.
Another round of bond buying "may get discussed" if the numbers look "disappointing," Hoenig told Market News International in an interview published on Tuesday.
Now they are talking about QE3, what a bunch of clueless idiots who are mandated to control inflation thru monetary policy, but cannot even do that using the correct data. The numbers they are using for Inflation are MINUS Food and Energy, WAKE-UP!!!!
Food and Energy are sky-rocketing!!!!
The Dow Theory of Non-confirmation remains in play, with a major divergence going on between the DOW, and the DOW Transports, if the Transports can not make new highs, the longer-term picture remains bearish according to this Theory.
We are now back to where we were last week, the SPX and the DOW making new highs, while the RUT, NDX, BKX, and the TRANS continue on with their divergences. The squiggle count posted first thing this morning is playing out as it was suppose too, with the SPX working on an impulsive wave up, currently now in the 4th wave(black). This opens the door for a green open tomorrow, IF the futures markets do not put the 5th wave in over-hours.
The internals were pretty good today, with Breadth closing at 4.67:1, advancers on 1.08B shares, of which 87.39% was "Buy" volume. The Bulls were definitely strong today, counter-reacting the Bearish numbers posted on Friday.
After this 5th wave wraps-up, then we are down to three main options, another set of 3-4's, Yuk, that I have NO idea how they would fit into the larger picture at this point, this 5th wave(black) up being only the top of a 1st wave of 5 up, with a small sell-off for the 2nd wave down coming very soon. This option really worries me because this 5th wave(Red) is now at the point of lasting too long, and traveling too far compared with the 1st and 3rd wave (Red) in the bigger picture. The third and last option would be a sell-off that would correct this current rally that started back near the beginning of December at a minimum with possibilities of even a larger sell-off covering the entire rally.
The Trend Finder II has been updated, with Silver going bullish today, also of note, the bearish signals on the major equities are getting very weak, and could switch over to bullish signals if we have follow-thru tomorrow.
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