Thoughts

The financial sector looks like there have been several very large sellers in the market for a week or so now.

I wouldn't be surprised if we saw a large hedge fund disgorging itself from the group in the quarter (Paulson?)

Mr. Market is wearing out the bears!

The advantage remains in the bulls' court.

SEC Commissioner Mary Schapiro will consider regulating high-frequency trading.

Even though I don't own it at the moment, one of my favorite stocks for 2010, ASPS, reported an important alliance this morning.

Earlier today, Herb Greenberg talked about the potential for an ETF collapse on CNBC.

TIPS Rate at 1.88%

That's up 25 basis points in the last few weeks!

The Fed might be concerned with inflation, but the implied inflation rate in the TIPS is 1.88% now.

The Federal Housing Finance Agency says that July home prices fell by 0.5%.

The path to the obvious will be filled with potholes.

Too many observers are glibly pointing to the following inevitabilities after yesterday's FOMC announcement:

1. the U.S. dollar will weaken;
2. bonds, gold, commodities and equities will rise; and
3. the Fed will be on hold in perpetuity.

Something tells me that the path to the obvious will be filled with potholes.

We saw a disappointing drop in new-mortgage applications this morning.

New mortgages reversed a four-week uptrend.

Also, refi, a key to consumer spending, is slowing, with the third week of declines in a row.

Eric Schmidt: Yes, we see your searches, but we forget them after a while.
Steve Colbert: And I'm supposed to believe you?
Eric Schmidt: Yes.

-- "The Colbert Report"