Futures are down but were much worse a few hours ago.

Received all kinds of questions on yesterday’s action and answered them all with an I DON’T KNOW!

As I said, there was no edge yesterday except to take shots. Down 550 on the open, up 350 within an hour, drop back down and trade a few hundred up and down and then at 220 pm, Dow was down 150ish and rallied 600 points within an hour.

Your questions:

Do you think the ugly is over?

I think yesterday’s low, based on the high volume and huge reversal holds. (FOR NOW) But suspect we get some wicked backing and filling here.

Why do you think this move down happened?

Stretched and extended markets, as far as we had seen in ages combined with all the complacency.

What happened with the XIV yesterday? It was down $91 to $7.

Don’t know except to say another attempt at leverage by Wall Street did not work and gather big lawsuits are ahead.

Do you think this is the start of a real bear?

Best guess? No! But cannot rule it out and will be looking at what other cards come out of the deck.

How much technical damage was done?

Lots! Typically, at the very least, there is going to be a decent amount of time repairing the damage before any decent move up.

Could we get a “V’ shaped move back up?

Anything is possible in QE markets but odds favor this may need some time but again, we are open to anything.

Is all this talk about easy money days being over true?

Hell no! I read the same crap in past two days. In fact, there was a headline about it in NY Times this morning. We are still at 1.25% fed funds. Japan and Europe are still negative and still printing money. Last week the Bank of Japan announced they would buy unlimited debt and ease even more in response to any surging rates. So where is the tight money? Yes…the ten year has been moving higher but it is still at a very low 2.75%. AND I GUARANTEE YOU THE NEW FEDHEAD WILL LOWER RATES IF NEED BE.

Do you think there is a plunge protection team that buys up markets when they get in trouble?

Absofreakinglutely! In fact, the new fedhead announced in the past that one of the fed’s jobs is to protect markets. No really! He said it.

WE EXPECT MORE ASSININE VOLATILITY HERE. We are not so sure yesterday’s reversal ends the tough market.

Lastly, we will put out a report tonight on the ridiculous mis-reporting, under-reporting, not reporting, and the outright biased, lying reporting on the markets byt the national media.