Retail threw in the towel weeks ago, which is why at this point confirmation that nobody is trading is like watching reruns of Weekend at Bernies (or GETCO's). ICI reports that the week ended August 11 saw a record 15th weekly outflow from domestic stock mutual funds, this time of $2.1 billion. YTD outflows are now just under $48 billion. Hedge funds are not the only ones who missed the miraculous and completely senseless July stock ramp: retail pulled out $13.1 billion in the same time, and has followed up by redeeming another $4.1 billion in August so far: nothing matters anymore - stocks can go up, they can go down: it is all the same to the one segment of the stock market responsible for the biggest portion of market capitalization. There is no improvement in the trend - retail has no faith in stock valuations, in the SEC, in the possibility that another flash crash won't happen tomorrow. Furthermore, retail is getting older and the retiring baby boomers would rather drink cyanide than put their money in stocks. We wish all the best to the computers and the Primary Dealers - they are now all alone. We dread to even think what cash levels are like at mutual funds.

Chart provided by GP Contributor.

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Another H&S pattern has emerged on a shorter time frame. Tick Tock Tick Tock....implosion pending. Sooner? Or later? Market is 1 thing but the economy is going off a cliff. How long before they come in sync?

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The Philadelphia Fed's latest look at the pulse of the economy was pretty disappointing, as the headline number went to -7.7, compared to 5 last month, and expectations of +7.0.

So what made the number so bad?

Everything from the order outlook, to hiring plans, and, and pricing power.

We've collected the key points.

(*Note: Each chart shows a "diffusion index" meaning it shows the difference between positive respondents, and negative ones)

Readers of my non-fiction book Epicenter may recall that Chapter Five predicts this future headline: “ISRAEL DISCOVERS MASSIVE RESERVES OF OIL, GAS.” That chapter is based on prophecies in Deuteronomy that specifically indicate that “oil” and “hidden treasures” under the sea and the sands will be found in Israel in the last days of history. It is also based on the prophecies of Ezekiel 38 & 39 indicating that Israel will be significantly prosperous in the last days, before a Russian-Iranian-Turkish alliance forms against her and seeks to destroy her. READ MORE

Depression.

Chart provided by GP Contributor.

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COLOSSIANS 1:9-10A

Praying effectively isn't something we all naturally know how to do—for most Christians, it must be learned. In fact, one of the disciples who had walked with Jesus asked for help in this area (Luke 11:1).

So often we hear requests to bless, protect, and provide for a person. While these are fine to ask of the Lord, there is another, more powerful way to pray. When we speak to Him using Scripture, our conversation contains the authority of almighty God.

The apostle Paul wrote today's passage to the Colossian church. From this, we know the specific requests he brought before God concerning his brothers. These are applicable to us today as well. Let's focus on the first two requests today and the remaining four tomorrow.

First, Paul asked for the believers to understand God's plan for their lives. Now, the Lord often does not reveal everything at once, but He gives seeking hearts enough information to trust and follow His way

Second, the apostle prayed that the Colossian Christians would conduct themselves in a manner worthy of Christ and pleasing to Him; Paul longed to see their lives prove consistent with their true spiritual identity. A follower of Jesus is evident to other people because of lifestyle and spiritual fruit (Gal. 5:22-23).

One of the greatest gifts we can give is to lift a person in prayer. And there is no more powerful way to do this than to speak Scripture on his or her behalf. Colossians 1:9-14 is a beautiful example of a passage to pray as we bring loved ones and ourselves before God's throne.

Iran will respond if Israel attacks its first nuclear power plant, which will begin loading fuel Aug. 21, according to the Persian Gulf country’s defense minister.

“In that case we will lose a power plant, but Israel’s existence will be in danger,” Ahmad Vahidi was cited as saying today by the state-run Mehr news agency, in response to questions about the possibility of an attack by Israel on the Russian-built atomic facility at Bushehr.

The Foreign Ministry’s spokesman, Ramin Mehmanparast, said today he “doubts” that Israel would “make such a dangerous move.” In comments on state television, he said, “Any aggression against this power plant will result in a serious reaction.” READ MORE

Some characteristically bearish thoughts from David Rosenberg of Gluskin-Sheff this morning, riffing on yesterday's two big numbers: housing starts and industrial production.

First on industrial production, which was generally regarded as a good number:

A seemingly positive economic report was the July industrial production report, which blew away consensus expectations, coming in at 1.0% MoM versus 0.5% expected. Production in the manufacturing sector rose 1.1% on a spectacular 9.9% jump in motor vehicle production.

Here’s why we called it a “seemingly” positive report. Remember that July has been a strange month for seasonal factors, especially related to the auto shutdowns (GM kept most of its plants open this year and the government’s seasonal-adjustment models don’t account for this). We saw wild swings in the weekly initial jobless claims partly due to seasonal-factor adjustments (claims dropped by 10% in the first two weeks only to increase by 10% in the third week of July, to give you a sense of the volatility).

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