braisnstorming Wednesday

1. China has developed a new rocket which can sink airplane carrier and threatens the US rule the world power level. Run the below excerpt through a translator only found it in German so far.

excerpt

Neue Rakete "Dongfeng 21 D": Chinas Schiffskiller alarmiert US-Militärs

Chinas Aufrüstung sorgt für Aufregung bei amerikanischen Streitkräften. Peking hat nach US-Angaben jetzt seine ballistische Rakete vom Typ "Ostwind" entscheidend weiterentwickelt - sie soll Flugzeugträger versenken können und dürfte die Machtbalance im Pazifikraum entscheidend verschieben. mehr...

2 Another sign that a big top is very close as the DOW also produced a weekly and daily 13 yesterday but the weekly does require that yesterdays close is valid by Friday ( or higher of course). Its time to get very cautious to the say the least. My target remains 11800 still but we almost have that anyway.

NYSE Short Interest Drops To Lowest In 2010

Submitted by Tyler Durden on 12/28/2010 15:00 -0500

• New York Stock Exchange
• NYSE Short Interest
• Short Interest
• State Street

According to the just released NYSE short interest update, the number of shares short on the NYSE group has just dropped to 2010 lows, after dropping by over 1 billion since the August highs. This has occurred pretty much in linear fashion: in the last 4 months, there has been just one two week period in which the shorts have increased. What is just delightfully ironic, is that even as broad market volume has collapsed, biweekly short covering has surged on a relative basis. In essence, the bulk of the market buying has been short covering, which traditionally is always 'offer-lifting' heavy, as shorts are willing to pay any price to cover underwater positions, especially if there is an accelerant involved, such as when a repo desk advises its "client" that State Street has decided to force squeeze financial stocks for the n^th time since March 2009.

The chart below shows that after standing firm through the end of September, shorts have capitulated and the bulk of the weak hands has by now been washed out.

The second chart shows the near relentless covering in biweekly short positions:

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