Below is a chart of the DIA for the week ending 5/21/10 with 30-minute bars. Obviously, the markets were burning down all week. It was ugly. The markets took a pounding for whatever reason you would like to sell. Europe is still over-indebted, US joblessness increased, financial reform was on every politicians lips, and the Euro was under fire. Of course, the markets were on fire in the other direction in the last half hour of trading on Friday. The Dow suddenly rocketed higher by some 125 points on very heavy volume. Yes, that's right. It happened in the last half hour of trading. You know what that means, right? Yep, I'm sure the PPT was determined to pull the markets up and keep the Dow away from the 10,000 level. Since the markets were down all week, I suspect investors were all sitting around waiting for a trillion dollar stimulus from some central bank in the world. Come on, Santa Claus - uh, I mean Bernanke - throw another trillion at us! Hey, don't get cocky if you managed to hold some stocks to enjoy the half hour rally. Even the Spain ETF was up strongly at the close. So was every piece of garbage on the planet. So was the moon or Mars or anything else the central banks could buy. Oddly, the US village idiot collection we call Congress passed some 'financial reform' package and the financial sector rebounded very strongly. Yep, the market is on fire. Unfortunately, the one thing that has already burned up is the brain. There is no sense or logic to the market's behavior anymore. It's a gambling casino. Get your chips ready for Monday morning. It looks like Benjamin Shalom Bernanke wants the stock market to go up. And, he has a printing press.
Charts courtesy StockCharts.com
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