Despite deep losses in Asian and European stock markets today, the subsequent strong reversal rally in the DOW has been attributed to the 1 mm rise in the far right blue bar in the chart below. Highlighted throughout the world today was the headline "U.S. New Home Sales Rise 2.7%". Keep in mind that this minute rise was only MOM as YOY sales were down a whopping 33% or, if we go back further, 67% since the peak in 2005. Too bad they did not really mention that home prices declined another 9% YOY and that inventories are still at record highs.

Therefore, this excuse should be considered quite lame to camouflage the major PPT intervention today. People still invested in the market will consider it pathetic while those on the sidelines must consider it nothing more than circus entertainment.

Cap on at $730 - VHF

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