Lack of follow through

Positions
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FAS @ avg. 5.13, cost 4.72
UCO @ avg. 6.99, cost 6.505


Mid-day trading report
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U.S. equity markets have been unable to follow up on a large rally since the last 2 days of 2008. Some profit taking was to be expected but systemic fears continue to drag down the main indices. Financials look to be snapping a strong 2-day winning streak and an earlier weak January existing home sales report appears to be the primary culprits of the downturn.

January Existing Homes Sales @ 4.49mm vs. 4.74mm expected (TM @ 5mm - take a bow)

We've seen markets bounce numerous times from daily first level supports.
S&P 753, DJIA 7,183.
We've even seen two strong attempts to rally off the day's lows. S&P 760 is a key level to watch - if we can sustain this level as the last half hour approaches, we may be able to pare losses. I don't see enough of a push to make it positive, but it is possible. Losses of less than 1% across the board would be slightly encouraging.

A larger than expected drawdown in crude inventories sent oil prices higher, but the rally is tempered by weak equity markets. An rally into the close should add a big boost to oil - watch S&P 760

Live from Queens
Think happy thoughts - you'll need them
TM