FAZ dropped almost 3% but is still ahead of where I purchased so I have added to my position.  I am not looking for a huge drop here but ...?  The news of importance this weekend was that China has instructed its banks to "roll" approximately $ 1.7 Trillion of provincial debt.  Basically, all the empty buildings and boondoggle projects around China were 100 % financed and that money is never going to be repaid (sounds like Greece and the rest of the world).  BY forcing a "roll" of the debt we are seeeing the curtain part on the world financial system that nobody  even strong economies will reform  - it tells us that almost all Sovereign and banking bonds and balance sheets are worthless but that they will be rolled and rolled until they are meaningless.  This probably means that in the long run I should be buying FAS (bullish financials ) as they will never be allowed to fail but for now I will go opposite to that and stay with FAZ on a close stop and follow my instincts.

I left the position on for the weekend because it closed over 3% in my favor.  Future prices will be governed by what Greece and Iran do over the weekend.  It is probably 50/50 that the market will open 3% up or down on Monday and I have no idea which !

There is a lot of bad news in the margins that the press does not report.  The decline in gasoline sales could mirror what the BLS ( some call it the bureau of lying statistics ) covered up by removing 1.2 Million people from the work force i.e. things are much worse than we think and people are driving less as they have nowhere to go.  All this is leading up to QE 3 which is when a r

FAZ closed a little above where I purchased it and gained a little more after the close.  When you consider that it was not long ago that FAZ traded above 70 it has dropped a considerable distance i.e. confidence in the soundness of our crooked wall street gangs has improved dramatically.  What has changed : No financial reform - the world is still awash with debt - while it might be possible to argue the US is picking up based on probably false employment reports there is no doubt that Europe and China have slowed - dry goods shipping keeps falling - GM et keep flooding their dealers with unsold cars - Greece  next Portugal or Spain followed by Ireland have to default and we have not even started to talk about the UK which is probably the most indebted country of all  --- IN A NUTSHELL nothing has changed the world is still a mess.  The best way for President Obama to be re-elected ( other than watch one fool republican argue with another on TV every week ) is to have a higher stock market and guess what - that has been what we have been getting.  Fading the market when the government may be the other side of the trade is probably stupid so I am keeping stops close to my position and lets see what happens.  We aren't living in a real world.

I am taking another shot at fading the market by buying FAZ.  It did not work last time but we will see.  Greece is the size of Delaware and we still have all the other PIIGS to renegotiate their debt.  It will happen but not before a few sabers are rattled.

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The pay roll report last week was only good because  1.2 Million people vanished.  Today I read this report about a steep decline in gasolene consumption.  This may be a time to stand back or even