The man who is most likely to become the leader of China, "in an unguarded moment" told a U.S. diplomat that China's economic data, such as Gross Domestic Product is essentially unreliable, according to the Financial Times.

The report adds that Li Keqiang told the then U.S. ambassador that, instead, he relied on "three sets of data — electricity consumption, rail cargo volumes, and disbursement of bank loans," when evaluating the economy. And that's what makes the sudden drop in the three variables more meaningful all of a sudden.

How bad is the data? According to The Financial Times: "China’s electricity consumption in April hasn’t been published yet, but electricity output increased just 0.7 percent last month from a year earlier, compared with a 7.2 percent increase in March and an 11.7 percent annual increase in April 2011.

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The S & P 500 made a new low on 5-15, again closing below the 1345 support level. The index looks headed for a test of the 200-day moving average.

We are still in position management mode. We have adjusted sell stops. We have added several new picks on the long side.

We have a full complement of long positions now and are almost out of our short hedges.
"Buy", "Sell" and "Sell stops" are based on the criteria put forth in Dr. Duarte's books "Market Timing for Dummies" and "Trading Futures for Dummies."

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