QE 3 by Other Means, Candlesticks, and a Favor

Plenty to roll through, lets get on with it.

There will be Friday night, so get those requests in!

A Favor
There is a economic based blog list being circulated that has all the best sites out there. People can recommend and comment on the ones they like best. Somehow, EconomicDisconnect is listed! I would love it if any reader would stop by the site, here it is:
EconomicDisconnect on the List
And hit the voting button. If you leave a comment (Disqus only, sorry!) that would be great too. Thanks so much if you do. Maybe one copy of "Creep" will be set aside for anyone I know voted for me. Shameless plug, yes.

QE 3 by Other Means
The more days go by in a "slow" economic summer the more I feel I have been hoodwinked. I think I had the basic mechanics right on my overall scheme, but was submarined by a compressed timeline and help for the "unfortunate" from all sides. What do I mean?

The BIG ONE:
The ECB Will Accept Portugal Debt (and any other) No Matter the Ratings
Normal investors cannot buy junk debt if is rated so (I know, ratings agencies are a joke anyway) this is HUGE. I should have known, I outlined the whole thing a little while ago:
The Easy Solution
This is why this site is great, you can read the news of tomorrow today!!!

Unemployed Get 1 Year Free if They Have a Mortgage
Sick and gross and how things are done here. Just unreal. We should all default!

Second BIG DEAL:
Another CPI Calculation Change
Anyone in the know, knows the CPI was changed years ago to hide inflation. Not good enough. Using a "chained" inflation deal, the US can save big bucks by robbing savers and retired folks even worse! This has monster market effects as "panic buying" may ensue by 5 second chart trigger traders looking to lock in yield while they can in stocks or whatever. Another mess, and it seems the Democrats had, believe this, NO IDEA this path would screw the old folks via social security payments. Ok, I believe ya.

Candlesticks
I have been following market stuff, but not really looking at things in depth. I made new charts tonight and I think they can show how hard a time this is to get heavily committed to the market. Still, I see nothing in charts tonight that is bearish or hint at a reversal.

Here is an SPY chart going back into April. Click for a bigger view:

I am a daily chart guy, and today the SPY printed an odd gap up candle. But look close, it is not a classic hanging man (like the one I have noted at May 31st or so) nor is it really anything at all. I would also question the uptrend length to make this a topping or reversal candle. Looks good with the Stoch not even moving down. Volume is crap awful, but what's new.

Next up, the DOW Transports, IYT:

So here we have real volume coming in, but a good dragonfly doji after a short trend up. The Stoch is flat and has no hint of turning down. How much do you want to bet this is a reversal candle? Me? Not much at all.

Last, a backed out weekly for the S%P 500:

The volume is on recess, the Stoch is JUST turning up, and no danger candle in sight!

Not an easy show to make sense of. So I won't. Waiting for some confirmation candle wise, and the jobs number tomorrow is a gamble with only the size of the upside the question. Hopefully things will settle out by Sunday night and I can work on positions then.

Have a good night.