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"Head-fake" ... "Swine"... Whine...

When it comes to making the call on US employment deltas, Les Depressionistas can't fight gravity. The chart below is what it is at this point and is, like all charts, a historical review of what's behind us. Market's don't trade on the past. They look forward. Now you know why we went straight up.

This week's jobless claims report provided the shock and awe required for that last brave soul standing to cover his shorts into the apex of the steepest short squeeze in modern history.

In the end, US employment improving should stabilize the US Dollar. This morning the economic data arrested the decline of the US Dollar and that, in turn, arrested the ascent of the stock market's squeeze.

Bernanke just walked America through what happens to interest rates as the economy finds her cyclical recovery - they go up. As they go up, this is one more factor that should allow us to start making some money on the short side again. With plenty of short covering out of the way, there are some fantastic entry points developing.

Our call has been to be long for the rollover in this chart. Now my call is to ring the register, take a deep breath, and wait to see where Mr. Market takes us next. All the while, remember that market prices don't lie; people do.

Keith R. McCullough
Chief Executive Officer

The Conch Has Been Claimed - employment1