Thursday brainstorming

1. Well China exports did the trick but its rather the imports I think as commodity prices have exploded - anyway markets are breaking below supports for the NDX and SPX ( later more on that).
I even heard that US Intel expects Gadaffi to win the civil war but that might just be an excuse for Sarkozy's suggestion for a surgical air strike on Libya seems very hypocritical now as the protest wave arrives fully in Saudi Arabia - Saudis opened fire to day which is serious trouble for Obama as his allies are now attacking civilians as well how can they argue that attacking Gadaffi is any better than Saudi's?


excerpt

Saudi Police Open Fire At Protest Rally

Submitted by Tyler Durden on 03/10/2011 13:25 -0500

• Crude
 

AP reports that the Saudi police open fire at protesters in Qatif after government warns demonstrators it will not tolerate protests. In other words, the shootings will continue until morale is restored. Look for crude to go antigravitational here.

2. Another good news for bears is that there are fewer of them as more have capitulated

excerpt

NYSE Short Interest Declines Again, Just In Time For Market Drop

Submitted by Tyler Durden on 03/10/2011 10:58 -0500

• Ben Bernanke
 
• New York Stock Exchange
 
• NYSE Short Interest
 
• Russell 2000
 
• Short Interest
 

While not at the lows from January, when NYSE short interest hit a multi year low of 12.4 billion shares, the just released update shows that into the end of February, total short interest once again declined from the Mid-February dead cat bounce which saw it at 12.8 billion, with the latest print at 12.6 billion shares. And now that the market is finally realizing that there is a several hundred point vacuum underneath if indeed there is even a brief break in Fed monetization, the number of shorts that may opt to cover on the market's way down is far lower than in recent history. Of course, this is what happens when everyone bets on the Bernanke Put and said Put starts to sputter, which simply means that the Fed chairman, who traditionally equates economic growth with the Russell 2000 is more boxed into a corner, than ever: QE3 will second gold to 2,000 and oil to 1,50. No QE3 will send the S&P to sub 1,000. Place your bets.