houston, we have a problem, page-25

if you take a look at any chart you will see that from the 10th Oct we have had a series of small rallies followed by retracements. Ech retracement has generally been slightly higher with the lows on lower volume....

I liken this scenario to a bouncing ball...

The first bounce is always the most momentus with great extremities between the highest and lowest points. With each successive bounce the distance between the high of the bonce and the low diminshes and interestingly so does the volume...

I believe that is what we are witnessing right now...

People are waiting for some sign that the market has bottomed..It won't happen...

It's just not that obvious...

It's a gradual and subtle change...No one sits there and says ok this is the bottom and I am buying...what is the smart thing to do is work out your max position size and when you think the bottom is in put 20% on it (remember you don't know..no one does)...If you are right add to it..if not you stil have cash to pick up at the next time you think the bottom is in...and so on and so forth...

This way you can ride the turbulence but still gain....

It's working for me...