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[Mr Dev]

Well nothing has changed,...nothing over the last 3 years that is.. with the late bears set up once again for oscillating liquidity adds to produce feel good Fridays. Now whether this is actually constructed.... or is a new phenomenon with astounding consistency,.. it really doesn't and shouldn't matter. A look at the charts show us the bounce was set up properly in the face of a minor pullback which once again comes usually after new high divergences. So timing any top in the markets is now becoming one of the toughest things to time. What is easy,...is to say it will never decline,..but as mentioned yesterday,.. that will one day,... hurt even those that expected it ....when the HarD Down turn does indeed show itself. There is once again a pattern that showed itself on the last upturn that again showed up this time.... I actually remember telling myself...."I'll always play that pattern" because of their strength... the pattern has an unbelievable win percentage nothing works all the time but this one is amazing and I haven't seen it fail. I actually had it drawn out on a full 8x11 piece of paper... to remind myself how beautiful it is. It works at both bottoms and when inverted at tops as well but it is mostly seen at bottoms in this market. Most of my charts are still in negative territory....the one day,..now two day,..bounce have not yet change the story ...yet...but we are getting close. However,...I can once again tell you ....any NEW recent HIGHs for the DOW RUT and NDX will diverge for a Oops sorry I a call I must take .... my position is still short ...and looking to exit on a pullback... maybe by the close. I see that Big players have covered and not gone Long yet... this is a dbl edge sword...if the were long already... front running to the short side would work sooner rather than later... If they decide not to fight the tape,..then new highs are expected as big money enters,.. and shorting as they exit will be the next opportunity. Best

[ogm]

Capitulation in the air.

Here is a post I saw yesterday on another board. From a guy who wasn't a stranger to short selling for many years.

"So...it seems somewhat ironic that I'm making fun of Cramer when he's been right...a lot, and I've been missing some incredible moves. So far, this has been a mediocre to poor year, despite some good stockpicking on the long side, my decision to yank money out or - worse yet - go short/buy puts has hurt me. I would have been better off starting 2007 by simply buying an index fund and going away.

I look at some things like GM and honestly can't comprehend the bull case.

I think I'm just going to keep quietly accumulating my fave small caps and turnarounds ... and relax for a while..."