The following names were subtracted from the Investors Business Daily 100 list for the
week of September 28: STEC Inc (STEC), W N S Holdings Ltd Ads (WNS), Inverness
Med Innovatns (IMA), Iconix Brand Group (ICON), Research In Motion Ltd (RIMM), Copa
Holdings (CPA), Life Technologies (LIFE), Abaxis (ABAX), American Superconductor
(AMSC), Innospec (IOSP), Intl Shipholding (ISH), Gentiva Health Svcs (GTIV), Shanda
Interactive Entmt (SNDA), TJX Cos (TJX), Alliance Data Sys (ADS), Oceaneering Intl
(OII).

The Shanghai Stock exchange has closed positive eight of the last nine trading days.

In today’s edition of Trader Art, I present the S&P 500 Index. As noted on the chart, the same setup from May of last year is taking place this year.

History doesn’t repeat, but it often rhymes.

If history has taught us anything, it’s that history teaches us nothing.

The Setup

Peace

This is, in essence, the entire story of the stock market, as I have found it. Like the South Sea Bubble, the great tulip trading mania in Holland, the Ponzi swindles, and the chain letters of the depression, it is kept in motion by one thing–faith. Sometimes the chain is broken, confidence lost, the whole house of cards comes tumbling down, and we have another Wall Street crash. Then it starts all over again.
-Nicolas Darvas
Wall Street: The Other Las Vegas

A relatively quiet day on Wall Street today as the dollar rose so equities sank.

Someone mentioned that there was a meeting amongst bankers today. Of course, more important than the meeting was the press circuit. Special emphasis was likely placed on make up and less expensive clothing. After all - this bonus scandal is a bit hot right now. Best not to wear the $10,000 suits around for a while.

Supposedly, one of these guys that runs one of these banks (hint : $BAC) declared over the television that at the meeting everyone decided that “we are all in this together”.

Now that, my friends, is the epitome of irony. YOU’VE been in this together for a long long time. Unfortunately, what YOU were in on (excessive use of leverage and negligent risk management) is what brought US here. Now YOU are declaring WE are all in this together. Unfortunately most of US aren’t running around with multimillion dollar bonuses in our bank accounts. Now WE are all in it together. Why ? Because of the losses that YOU racked up through deplorable risk management and excessive leverage. Now, all of this has to be paid for by US.

And that just isn’t right. Is it?

Peace

“All energy flows according to the whims of the great magnet.”
-Hunter S. Thompson

There he goes. One of God’s own prototypes. A high-powered mutant of some kind never even considered for mass production. Too weird to live, and too rare to die.
-Raoul Duke
Fear and Loathing in Las Vegas

There is lots of bad news hitting the futures this Sunday evening. American International Group (AIG) is being extended another 30 billion. What a joke. This is nothing but another attempt to resuscitate a patient that has clearly flat lined beyond any possible recovery. The mathematics are facing their implications in the world of AIG. On September 15th, the governor of New York said AIG is financially sound. Where is he now? This AIG news looks to be the catalyst for the next big move. Move which way? Move down in equities, but more importantly, move up in Volatility. Were you short the crash of 2008? Are you short for the crash of 2009?

Peace

Watchout