Despite bellweathers Microsoft, American Express, and Amazon posting very weak earnings after the bell yesterday, the markets somehow still finished in positive territory today. This highly irregular activity has been going on for weeks now and just reeks of Wall Street manipulation. The two articles below help decipher the intervention. The planned $200+ billion in auctions next week should be memorable.

Regards - VHF

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Breadth At An Extreme

B.I.G.

July 24, 2009

The 10-day advance/decline line is a widely followed breadth indicator that is used to measure both the health of a move as well as inflection points. It is calculated by finding the average daily number of advancers minus decliners over the last ten trading days. Below we highlight a chart of the 10-day advance/decline line for the S&P 500. As shown, the recent rally has put the 10-day A/D line well into overbought territory and at a level that has indeed marked a peak during prior rallies in the past year. During the rally in early December and the initial rally off the March lows, the 10-day topped out right where it is now. After 12 up days for the Nasdaq and an average gain of 13% for S&P 500 stocks since July 10th, it's time for a breather.

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Market Rips, Short Interest Plunges

Tyler Durden

July 24, 2009

This is so much more than just a short covering rally. Oh wait, it's not. 72.19% drop in Short Interest across securities, compliments of stock loan-cum-TARP bailout recipients. So you see, if you are a taxpayer, who believes that fundamentals are more critical than an artificially inflated market compliments of the biggest, most orchestrated short squeeze in history, you got Got by the same people you bailed out.

Click to enlarge: http://tinyurl.com/lzmhz5