hmmm ... bit of a problemo ...

Hmmm ... as previously, the exhaustion top is in (exhaustion DEBT top in the US that is ...) and profit takers moved in.

We are now off 330 points or about 5.5% and experiencing the first wave of nervous nellies getting out.

Most of us are sitting on a heap of CGT and can't get out if we wanted ... sooo at the risk or repeating myself ... hope everyone is fully HEDGED !!!

PROBLEM: Price has come off and so far within the trend range ... as previously, the convergence of the trend and Fib(50%) is an issue as a break here generally signals a REVERSAL and god know we don't want that just yet.

Looking for a disconnect between China and US and XJO here which will suggest no global panic. From memory the DOW/S&P are at a P/E of 17 or so and even if US earnings growth drops below double digits in the months to come then no real cause for alarm ... a correction is healthy as it demonstrates that MARKETS are working properly.

The DOW got ahead of itself since Jan07 and the correction has seen price revert to the 30day MA ... or simply 'reverted to the mean' in rem speak ... sooo tonight will be interesting.

There remains a bit of a problemo with the XJO as the Fib(50%) has been breached along with a break in the trendline and if panic sets in (we are off 5.5%) this could be a cliff.

If yer not sure what to do ... you could do worse than buy PUTS ...




Cheers ... tight stops.


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