Overview of today's market action

Jobless claims came in today at 470k, higher than the upper end of the consensus range. This bodes negatively for the labor market and is the second consecutive week the 4-week moving average increased. This, coupled with the lackluster durable goods order, is a worrisome signal about our economy's current rebound trajectory. Unemployment is stalled at 10% while jobless claims have stopped declining. Charts everywhere are showing breaks of major trendlines, from those of the FOREX market to those of the Dow Jones Industrial average.

As I wrote in a previous post, one must track economic and earnings data in order to get a grip on the future direction of the financial markets. Earnings have been fairly resilient across the board, including the strong reports that MSFT and AMZN just posted tonight. However, the economic data is beginning to counter these strong reports. Since last week I have been shedding my positions and currently hold a fair amount of cash. I have also been moving in and out of 3x bear funds, such as EDZ. Frankly, I wouldn't mind a strong correction here because it would create more value plays and some of my favorite stocks, such as ELY, would begin looking cheap again.

In other news, Bernanke was just reappointed to be Fed Chairman after a Senate vote of 77-23. Apple released its new iPad, which didn't convince me its a necessary device to have. I'm not convinced it's a better substitute for the phone or laptop because the Kindle is a better e-reader, the laptop is a better laptop, and the phone and is a better phone than the iPad. I'll save the $500.

I enjoyed when Obama talked of America's need to play for 1st place in last night's State of the Union address. I believe there is a discouraging spirit amongst Americans right now that we are falling behind China and India. America is fighting nation, a nation of innovation and democracy, and most importantly, a nation whose morale may fade but whose fight doesn't stop. As Americans, we will and always have, overcome the hardships that sometimes cloud over our great nation.