Monday

EUR/AUD and DJIA

TheInflationist got stopped out of our long Dow position at 7945 ($1500 - Ouch!!). We enter another long now at 7880 at $5/point; with another order to open at 7700 at $5/point. Stop is at 7550. We also have an order to open to short the Euro/AUD (mini) at 2.05 for 2 contracts. We feel that we are coming close to a rally. Some big banks (Commonwealth Bank of Australia) have reported (after hours) higher than expected profits. We may see a wave of similar unexpected announcements across the financials (this is purely speculative) - which will drive markets up in line with our technical analysis. There is no doubt that we are in a down trend, and we see more pain to come, but feel that we are in a respite for several weeks to months (contrary to most other financial sites/blogs). The big players are trying to flush small players out before they start buying it up and later on selling it back to us at higher prices before markets turn lower. If markets just move in ONE direction, there simply is not enough money to be made by market manipulators - who thrive on volatility and on going against the majority of smaller players. As we mentioned in our previous post, the FTSE 100 Future contract is still lower than the current indices - suggesting that the masses are expecting it to go lower. These expectations we believe (and hope) will be proven wrong soon. TheInflationist sticks our neck out again! Anyone joining us?