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CONTRARIANTHINKER |
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SM INDICES 3 Mar 2008 We got our break down. Now what?
The history of that 1st reversal was this. Late in trading an announcement was made that banks were going to support the troubled monoline securities insurer Ambac. “Analysts from Oppenheimer recently estimated recently estimated that the total exposure which banks have with the bond insurance companies is $70 billion. If that number is accurate, it would be fair to ask how a $3 billion bail-out of Ambac and similar deals with MBIA (NYSE: MBI) and one or two other of the insurers would solve a problem which has a much broader financial magnitude.” Imagine you have fire insurance and your house is burning down. Unfortunately this is London in 1666 and your insurer cannot pay out on all these homes. Homeowners have a whip round to give the insurers enough cash to pay their claims. Does that make sense? Neither does the Ambac rescue story. Nevertheless, late in the day the PPT start buying, market rallies into close - probably a short squeeze going on. DAX update
Note : if we get a hook it can take 1 day or 2 weeks to complete. April Puts I think bought on the 38% retrace are my order du jour. 28 Feb 2008
DOW
FTSE
DAX Daily Log Rolling
26 Feb 2008
25 Feb 2008 Target 7000/Tues or Wed
22/2/2008 Lots of twos in today's date. Two charts one red flag
Previously on this channel... FTSE100
...actually monthly MACD is strictly speaking NOT -ve divergence - but see INDU below
FTSE250
INDU Massive LT -ve divergence
dB
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