CONFIDENCE

Obviously we are experiencing a crisis of confidence on Wall Street in the past few weeks. The FED has been working overtime to make sure Wall Street the gears of America keep on going. Monday we will see how much was done over the weekend to amend the collapse of Bear Stern. Personally I dont think anyone in their right mind who manages money wants to be the first one to try and bet against the current crisis.
Last week there was substantial put buying in Bear Sterns, Morgan Stanley and Lehman Brothers. The puts on Bear Sterns were spot on and I think the put buyers in the other might also be spot on. No way as I said before that the mortgage meltdown just end in write downs, they should end in one of the banks going under due to cash crisis due to massive liquidation or a flat out Bankruptcy.
Today I will be looking at some charts to plan out the trading for this upcoming week, remember this week is option expiration, which usually brings in the manipulators of the high volume traded equities. This week tuesday is also the FED meeting which could pose well for high volatility with everyone guessing what the FED will ultimately say about the current market situation.
I hope we bounce hard some time in here because it would set up a sweet short opportunity as I see too many BEAR flags forming on the longer term charts.
What OIH here, it looks like it wants to break down out of the toppy pattern and I might go out on a limb here to also say the Euro looks extremely toppy and is dead at my target noted last month of 1.57. A break down from here can send us right back to the 1.38 area, which would be good for a OIL and Gold price pullback, we will see soon enough.