Well the nascent reversal on Thursday was stopped in its tracks by the month-end window dressing on Friday as the mutual frauds pump for month-end, as they always do. Not always, but mostly, successfully, especially where they are pumping individual issues. A quick look back this year shows the day before the last day of the month positive 6 times out of 7. Coincidence? I don’t think so. I suppose with those odds I should trade it.

Anyway, we’re now pretty overbought. John Hussman is (for him) extremely bearish: “In my view, Friday’s rally on a distinctly stagflationary GDP report represented a good opportunity to do some lightening up of stock market exposure for investors who have not already done so, and would not easily tolerate a decline of 30% or so in the major indices.” In other words, don’t let the door hit you in the back.

I’m still pretty short so I would be happy were he to be correct.

Nourel Roubini, an economist and NYU professor who runs the best economics site in the world according to The Economist, gives an interview that is well worth the listen. I agree with him in most all respects, except that I think the recession may begin a quarter earlier than he does. We’ll see.

Goldman Sachs figured out that the housing market is tanking and we will see declines in nominal prices. No kidding.

And an weird data point. M1 is falling like a rock, according to the St. Louis Fed. WTF?