will the ppt kill our short ... grrr, page-9

Hmmm ... noteworthy that the last two sessions saw the DOW rally hard from 200 points down an hour before closing to finish +/- about even.

Dow futures yesterday were running down -80 or so all day until the BHP/RIO tilt rumour hit the street pushing futures into green.

IMHO today XJO action is BHP/RIO centric and accordingly represents merely background noise. Do I think that RIO today is worth $140 when it was $72 a little over 6 months ago? Those paying $138 this morning obviously think so.

Those looking for something supportive from bbankie were disappointed whose main message spoke only of a weakening US economy ahead ... nothing new in other words.

Suspect the sub-prime club merely want the issue out of the headlines until next financial reporting in Jan08 ... Countrywide just offered 52,000 delinquent ARM mortgagee's a new reset from 10.5% to a rumoured mid 5ish to stem defaults ... who said Banks don't have a heart?

Subtract this distraction and DOW shenanigans and our SHORT bias remains valid. Against that is the recent pattern or two minor up's and then a major down so our Market is still in WTF mode ... next support at critical 6400 and we are holding our SHORT with trailing stop at 6605.




Cheers ... tight stops.


This is only my view ... read the red stuff.