Some Wall Street “personalities” are trying their hardest to pump the market back up pointing to whatever good data they can find. Unfortunately, for each data found there is a statement disclosed between the lines that completely negates it. For example, LEN went up 12% yesterday on news that the company earned 19 cents a share (although $1.50 something of that was a tax rebate from carrying loses back eons, the Chris Dodd affect). Without the tax credit, the company would of have reported a 1.30 loss…ouch. Today’s unemployment data was very similar. There was the strong sign of an improvement in the employment number, “only” 85K people lost their jobs. At the same time, 661K people left the work force and real unemployment is well over 17%. Unrealistic expectations are exuberantly high, the vix is shockingly low, and credit is tightening. O where oh where is the market heading! […]

Gold today was up despite a strong dollar. Although the market was volatile and the “reported economic data” even more volatile, gold saw a strong demand all day long. There is no hint what so ever from the Fed (Bernanke) about when rates (if ever) will be raised. We at Alphas Edge just keep wondering what kind of fool is willing to give cash and received nothing back in return. Well, maybe it’s time to keep the money in the mattress. If the Fed has no plan to raise rates, than this is a CLEAR indication that the economy is still in trouble and at risk of collapsing. On an unrelated topic, there are rumors in the internet that Madoff is hospitalized for severe facial injuries and collapsed lungs. I hate to speculate, but no way could this have happened from 1 fall off a prison bed as they claim. Maybe if Madoff was continuously jumping off his bed in different positions, the story would be more plausible. I just cannot believe that it is not being reported on the major news networks. […]

2010 will be much like the previous few years. Fraud and manipulation will run wild until the economy starts to sparrow downwards again. Because Bernanke is spineless and Obama loves bankers, inflation will be the biggest challenge we will face in 2010. They will continue to do whatever it takes to print our way out of this mess. We are now entering the 11th year of a 20 year like Japan economic catastrophe. […]