..looks like they blew it again

Despite,  China moving up its CPI data upping the chance of a lending hike (*probably just to remove conflict with economic policy meeting Dec.10-12 and likely to be only another RRR hike),  the broad US market ‘interestingly’ held flat premarket and even opened higher before succumbing to a soaring USD/Bond yields.   Naturally, a profit taking group from yesterday(commodity linked groups/stocks,) continued to be hit off hike fears/USD, but another profit taking group from Tuesday, the Financials (notably GS/JPM/ BAC, regionals) were trading higher (positive tone helping from GS conference), plus cyclical tech was doing well again.   This is the ‘cyclical’ continuation  we noted last week to look for,   Maybe, a little support was also provided by the very successful China IPO’s (DANG YOKU ) noted in DJIM #48 to watch into the trading week.  In all, this lead to the important technical level around 1220 being hit and bringing on dip buyers.   Once again, the Bears/Shorts, just as they were gaining momentum backed away as the plethora of news bits from Tuesday afternoon proved to be just noise as discussed.

Everything is seemingly normal, only need to be careful with 'some' commodities in case of a further consolidation occuring.   One way to take part in the Financials is through the ETF’s (KBE commercial banks orRKH for regionals).  Money is finding places to go if one place becomes dysfunctional, which is a positive.

Initial Claims on deck (see DJIM #48 note on topic)