Between FAZ and FAS by themselves (which didn't even exist half a year ago), nearly 900 million shares changed hands today. 900 million! Forgive my bluntness, but I'm starting to think that going long FAZ, like buying lottery tickets, is a tax on stupidity. Or at least one of the most efficient wealth transfer mechanisms ever created.

What's apparent to me (a skosh too late) is what a superbly "technical" pattern FAS (its profitable brother) has laid out. Indeed, although a lot of people completely dismiss the ideal of using technical analysis on "ultra" ETFs, it holds up remarkably well in some cases. Just look at this:

There are all kinds of cool things going on:

1. The very clean downward channel;
2. The upside break of that channel around $5, which was a great buy signal;
3. The steadily ascending volume which led to the breakout;
4. The ascending right triangle, completed today, showing a pronounced breakout

I cringe to say it, but if this were a "normal" stock, it would be a pretty obvious buy. It's hard to fathom that a triple-bullish ETF based on financials would be a buy at this point, but it's a really sweet chart.

FAZ, on the other hand, is a complete catastrophe:

Over the past couple of months, this has been good for nothing except losing money. Can you believe this was a $200 security at one point? The volume today - a new record - was made as another 20% was hacked off this pathetic pile of garbage. Billions of dollars have been moved out of some pockets and inserted into others.

This countertrend rally has been a huge, huge grind. The NASDAQ is the only index showing any signs of weariness. I truly thought we'd see a move up to 850, and then a retracement to 750, and then a push to 1050 on the S&P.

As it is now, there hasn't been any meaningful interruption, so the retracement to 750 seems like a distant memory. I do think we will still get a meaningful retracement at some point before we make the final countertrend peak, but I'm starting to think that the peak - - based on the strength of this rally - - might not be 1050 after all, but something even loftier, like 1200. It is difficult to ignore the power and viciousness of this rally.

With bullish sentiment having moved from 2% to 80% in the span of two months (just look at the New York Times to read all the flowery stories about how great everything is now), I don't think we're going to keep going straight up. But I'm the first one to admit that getting this far without a single pause has left me shocked and more than a little disappointed.

I'll be very occupied this afternoon, but I'll do a post tonight. In the meantime, those of you who had trouble with my little cinematic creation earlier, here it is in YouTube.

Please see the next post to enjoy the movie.

One of the few items I bought yesterday was ANR, because a lot of these commodity-related stocks have wonderful patterns. It's having a good day. Take note also of the beautiful diamond pattern that preceded its tumble last year.

I'm still hard at work on my zany project. You're going to love it. Promise.

Well, the market isn't as fascinating to me these days as it normally is. I think the Elliott Wave crowd has it right - - the market will go up, unless it doesn't.

So I'm working on a little video project for you good people. It's not going to make you a penny, but I think it's damned clever. So that's what I'm doing.

NOTE: I'm not sure if Disqus is having issues, but I'm definitely seeing load problems when comments try to come in.

I'm still working on a goofy little side project I'll reveal in a day or two.

I got a late start (obviously) so will be catching up. I will say this, however. Paranoia these days seems wise. When the /NQ had its brief dip last night, I got out. I can't stand waking up to sudden spikes. And, sure enough, this morning we had another surge, so I was glad to be flat. (for e-mini's, anyway!)

So I'll be back here in a bit.