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Bulls say, "All bad news is already baked into the efficient markets."

I say, "No kidding."

Divergences have done nothing but widen this week as foreclosure gate lingers. All one needs to do is take a look at any bank stock or index as we will shortly in some charts below. In other news, INTC and AMD both go rage against the machine to the upside in the after hours trading sessions only to sell off for the rest of the week in the real trading session.

For ...

A little fun with charts this morning. Readers of the Banks thread know that I have been banging my fist on the table regarding underperformance by the financial sector for all of 2010 now. According to Standard and Poors, Financials comprise 15.71% of the S&P 500 Index which stands second only to Tech which makes up 18.71%. 3rd place is Health Care at 11.5%. So with this in mind, both Financials and Tech should at least be in line with the index or better as far as performance. A look ...

Went 35% S Fund during the week in hopes for a last gasp rally up to the 1150 area. I say one more rally for the summer which will end around mid-late August and will be just enough to get everybody back on the buy Euro/sell US Dollar, inflation is back trade. Also bought QQQQ at the open on Friday in the Roth IRA with 35% of cash. I couldn't resist, but made sure I used small positions. Always risk management and never swinging for the fences these days even though the machine wishes ...

(Fast forward to 1:40) "Run away, turn away, run away".... we all know the true meaning of that song, but we can totally apply it to the current market conditions in an 80's kind of way. As the crowd seems to have been fooled into playing the contarian, buying when the market is down method, but they fail to recognize that it's only contrarian when everybody else is selling. For the most part, contrarian investing was probably invented by the enormous mutual fund industry ...

Ahh, yes, the songs of the summer; not only is love like a baseball game, but so goes investing.

Tapped out to the G Fund yesterday and while we probably will get a little rally next week, I'm not going to worry about it. The failure of the market to rally in the midst of some serious up volume and breadth thrust goes to show how broken it is. Right now there is some major resistance ahead to include those who bought at the start of 2010 and the Feb lows. ...