S&P Update - Market Weakness Continues

Let's take a look at the market before the open here. The above data is up to date as of yesterday. I don't use any traditional metrics as it pertains to quantitative or technical analysis of financial markets as I have said before. Most mainstream analysis is completely useless over time. Financial commentary based on opinion or guessing is even worse. It isn't worth the paper it is written on. Even simple metrics such as advance-decline data has become only marginally useful with so much short term trading, program trading, bonds trading as stocks, ETFs, ETNs, etc.

So while the traditional advance-decline data is close to hitting new highs, let's look at my advance-decline data overlaid on the S&P. The market is moving higher on borrowed time in my estimation. The bulls are gloriously calling this correction over. Doubt it. This data point has tracked perfectly with the market and is actually pointing to substantial weakness as the market continues to move higher. In fact, this data point is close to breaking the low made in January and again in February. The market has not been able to make new highs without confirmation of this data point since the March 2009 bottom. All of the short covering in March and then this past summer has fueled as much as 50% of this rally in my estimation. Much of this dynamic driven by Wall Street firms raiding shorts. Of course, with taxpayer money. (How the hell does any of this assist society or the economy?)

Loud mouth Jim Cramer stated yesterday that President Obama tanked the market midday with his health care remarks. Not even close. This guy ought to go shine shoes for a living or something on his level of ability. (No disrespect to professional shoe-shiners.) Remember, one of our predictions is that Cramer will be shining shoes before this cycle is over. ie, That he will be off TV.