• Enjoy your evening.

I have to sign off now as my technicians try to figure out the Internet connection issue in my office.

Sorry for the sparse posts and lack of interactivity in the comments section today.

Enjoy your evening.

• Nikkei News reports that Nexus sales have exceeded iPad sales during the holiday shopping season in Japan.

• How can we be certain that the individual investor will become engaged in stocks this year?

Over the last week, one of the key points in support of the January rally, is talk in the business media that there is an almost certainty that the individual investor will become engaged in stocks this year.

To me, it is a truly amazing leap of faith to make this statement given these obvious issues:

• There have been six years of disintermediation out of domestic equity funds and only two weeks of inflows!
• The uncertain tax, fiscal, jobs and economic backdrop.
• The still sluggish consumer income growth relative to ever-increasing costs of the necessities of life, which seem likely to push the propensity of the retail investor to buy equities to the back burner.
• The S&P 500 has risen from 666 to 1470, and now the individual investor is going to run out and buy stocks with abandon?
• Do we really think the average Joe is well positioned financially to move monies into stocks and that, after such a rise they have finally seen the light?

The reallocation trade to me is a weak thesis upon which the next leg of the bull market might be dependent.

• I continue to be Internet-challenged today, limiting my commentary and my trading.

• And the consumer moves the domestic economy.

The refinancing boom, reflecting ever lower interest rates, has fueled consumer confidence and consumption over the last one and a half years.

But, according to the lynx-eyed Mark Hanson in a report I received today:

[It] is by and large over even if interest rates fall back to where they were a month ago. There simply is nobody on the diving board ready to jump in the pool on rising or falling rates. Everybody is in the pool. In fact, they have been in the pool o long they have shriveled up and can no longer be counted as a tailwind....The new era mortgage market is far too efficient to have any  significant volume left on the table.

If Mark is correct, Katy, bar the door, as retail sales (already impacted by the fiscal drag of payroll taxes, etc.) will likely be quite disappointing in the months ahead.

And the consumer moves the domestic economy.

• I am keeping IWM in my crosshairs for shorting.

Yesterday I pointed out that I closed my PowerShares QQQ (QQQ) short position owing to Apple's (AAPL) depressed price (among other reasons).

I am glad I did it and continue to focus my shorts on iShares Russell 2000 Index Fund (IWM).

• Under $85.

I would be a buyer of Altisource Asset Management (AAMC) under $85.

• I'm still doing little.

It's a weird market, with Amazon (AMZN), Google (GOOG) and homies at days low.

Doing little.

• Short interest on the NYSE plummets.

NYSE short interest drops to March 2012 levels.

• Doing little.

I am having some Internet connection issues.

Doing little.

• The stock is down on vague stories regarding accounting issues.

Salesforce (CRM) is falling on vague stories regarding accounting issues.

Here is a filing just made by the company with the SEC.

• Specifically, the company projected flat year-over-year North American operating margins and a much higher tax rate.

General Motors' (GM) investor presentation after the Detroit auto show contained cautionary profit remarks.

Specifically, the company that a projected flat year-over-year North American operating margins and a much higher tax rate (of 34% vs. 19%) should result in the consensus for 2013 EPS coming down, and I suspect the shares will "stall out" at these levels, especially if my market concerns are justified.

Consensus 2013 EPS should move toward $3.40 a share from about $3.85.

That said, 2014 looks great, and EPS could approach $5.00 a share as trucks take on a higher share and cost reductions continue.

• In China.

Apple (AAPL) China is offering a two year payment plan for iPhone buyers.

Bloomberg headlines:

• Apple allows installment payments on web purchase over 300 yuan.
• Apple China installment plan requires China Merchants Bank card
• Apple announced installment plan on China website
• Apple introduces installment payments for China purchases

• Here's a whiff.

Breadth near the open at 9:40 a.m. EST is very weak despite little move in indices.

• S&P 500: 82 advancers to 412 decliners
• NYSE: 344 advancers to 1,412 decliners
• Nasdaq: 663 advancers to 1,133 decliners
• Russell 2000: 473 advancers to 1,232 decliners

Volume is 16% higher than past 10-day average, 15% higher than past 30-day average and 16% higher than yesterday for this time of morning.

• I covered my JPMorgan Chase short.

I have covered my JPMorgan Chase (JPM) short rental at $45.70.

That was a quick rental.

• I put on the trade at $46.50.

I have taken a trading short in JPMorgan Chase (JPM) at $46.50 in premarket trading.

• Is the next move Facebook search, which will be graph search plus a direct Google competitor?

Following up on Facebook's (FB) graphic search announcement yesterday, I am wondering out loud whether the next move is Facebook search, which will be graph search plus a direct Google (GOOG) competitor.

It's probably still early to quantify whether Facebook search could be a meaningful threat to Google, but don't be surprised if this concern begins to impact Google's shares and valuation  (to the downside) in the period ahead.

• The World Bank cut its U.S. growth forecast to 1.9% from 2.4%.

I mentioned earlier that the World Bank last night cut its global growth forecast for 2013 to 2.4% from its last estimate of 3%.

What I didn't mention is that the World Bank cut its U.S. growth forecast to 1.9% from 2.4% and projected a modest contraction of 0.1% in Europe (but with a better second half of the year).

P.S.: In Monday's opening missive I cited my expectation for (at best) +1.5% real GDP growth for 2013.

• Today's the day.

Procter & Gamble (PG) is ex-dividend today ($0.56 a share).

• Run, don't walk, to read 'Bull Market Durtations' in Barry Ritholtz's Big Picture blog.

One of the more important points made in Monday's opening missive was that it should be noted that the bull market, which began in early 2009, is aging.

Barry Ritholtz's Big Picture blog puts an exclamation point on my observation this morning.

• Run, don't walk to read Zero Hedge's skeptical view of JPMorgan's earnings.

Good and understandably skeptical view of JPMorgan Chase's (JPM) earnings from Zero Hedge -- most of which I agree with it.

Note the decline in return on equity to still relatively low levels.

• Here it is.

Below is the economic calendar and consensus expectations.

• This is consistent with my concerns.

The most important overnight news was the cut in global economic growth by the World Bank.

This is consistent with my concerns expressed in Monday's opening missive.

P.S.: It is do or die time on my surprise that the S&P 500 makes a yearly high in the first two weeks of January.

• The optimism on the banking industry is misplaced.

Quick look: USB (USB) and Bank of New York Mellon (BK) miss.

The optimism on the banking industry is misplaced given the cyclical and secular headwinds (spreads under pressure, loan demand moribund, credit quality improvement has about run its course, too much capacity).

The positive is that the stocks are rising.

Go figure.

• I don't quite understand the optimism as we await JPMorgan Chase's earnings.

Given the weak spreads and weakening mortgage origination numbers at Wells Fargo (WFC), I don't quite understand the optimism as we await JPMorgan Chase's (JPM) earnings.

The demand outlook for the banking industry remains muted for the next few yeaers.

But there is much that I don't understand about the markets these days.

Separately Pacific Crest boots Apple (AAPL), Tom DeMark's favorite stock.