Comments and outlook for 08-22-2011

If I were in charge and wanted to try and halt the market slide I probably would provide news to divert attention from the potential sovereign and bank collapses in Europe and domestic economic troubles.  How would I do that?  Well Palestinians shooting Israelis and  a shooting war there could do the trick.  If Israel failed to respond properly and attack I might have to move to plan B.  How about have Libya falls and Daffy Duck flees?  That should divert attention a few days until Ben tells us on Friday how the Fed plans to inflate assets (stocks).  Of course a nice hurricane up the coast of Florida to the Carolinas wouldn't hurt either.  That is if I was in charge....  Might provide enough time for the Europeans to figure out another can kick down the road.

If as projected the 22TD cycle has bottomed we should get something of an up move Monday (because we have other news to divert the sheeples attention).  Here is the SPX short cycles:

GL traders.  Be careful, the bear is lurking close by.