This could be the greatest show on earth and you should really give traders a hand. Markets opened strongly on the back of oversold conditions, a stronger dollar, weaker gold, oil and commodities. But later with FNM, FRE crushed and others in the financial sector, stocks fell off a cliff.

It looked mighty grim for awhile this afternoon, but Da Boyz and their allies were there to save, if only temporarily, what was turning out to be horrible day. At the stroke of 3 PM 12K contracts, mostly on the buy side, hit the NASDAQ eMini contract and the short squeeze began. While prices faded into the close the action was spectacular all day.

Volume was again heavy and breadth horrible. Yahoo/Finance has trouble with numbers and maybe that’s a reason they can’t figure out MSFT’s bid.



















































































































Sure! Give them a hand for entertainment if nothing else. But, in all seriousness, today was scary. We all know the financials are in deep trouble. But will FNM and FRE become default candidates? Will the American auto industry survive? And, Merrill Lynch is holding a sidewalk sale if you happen to be around Wall and Broad. These are pretty unnerving conditions. Therefore you have to applaud those fearless hedge funds and trading desks [and whomever else you think has that muscle] with the funds and moxie to put the squeeze on anytime they like no matter the news.

Have a pleasant evening.

Disclaimer: Among other issues the ETF Digest maintains long or short positions in: SPY, SDS, MZZ, IWM, TWM, QQQQ, QLD, XLY, SCC, XLI, SIJ, IYR, SRS, XLV, RSC, GLD, DBG, DBA, DAG, EFA, EFU, EEM, EEV, EWZ, RSX, EWC, FXI and FXP.