A word of caution for all the bullies from my friends at Trim Tabs...

Mutual Funds Show Huge Sept. Outflows With Flight to Mattress Equivalents

Santa Rosa, Sept. 30 - TrimTabs Investment Research estimated today that the U.S. lost 231,000 jobs in September spurred by the credit crisis which has caused a virtual employer hiring strike. TrimTabs, which makes its estimates based on the daily withholding tax inflows into the U.S. Treasury of all salaried employees, estimates that the U.S. lost 974,000 jobs this year.

TrimTabs said that amid the credit crisis and economic uncertainty there was a $41 billion outflow from equity mutual funds and a $22 billion outflow from bond funds for the month through Friday, September 26, even before Monday's market meltdown in which stocks lost $1.4 billion in value.

TrimTabs said the September fund flows through Sept. 26 compares with outflows from equity funds of $75 billion and inflows of $95 billion into bond funds for the eight months of 2008 through August 31.

"Money is leaving the stock market and money market funds for the equivalent of the mattress, seeking safety in Treasuries and accounts in strong banks," said TrimTabs CEO Charles Biderman. "Individuals are scared and have no confidence in our system and whether our leaders know what they are doing.

Biderman said, "There is a huge amount of sideline cash that wants to return to the stock market. What's necessary for that to happen is a return of confidence in the system."

Source: TrimTabs investment research

Thursday could be an ugly day if BLS confirms this data...