The Big Crash.

The stock market posted its worst one-day percent decline in 21 years after the House of Representatives rejected the $700 billion financial relief plan.
Congress will work toward a new plan to ease the financial market turmoil, although it is not clear how long it might take.
To help improve dollar liquidity, the Fed coordinated with nine central banks across the globe to more than double their swap authorization limits to $620 billion. In addition, the Fed is increasing the size of its Term Auction Facilities. The moves gave a modest improvement to credit markets, only to be overshadowed by the rejection of the financial relief plan.
A huge drop in oil prices was another sign of the economic chaos that investors fear. Light, sweet crude fell $10.52 to settle at $96.36 on the New York Mercantile Exchange as investors feared energy demand would continue to slide amid further economic weakness. And gold, where investors flock when they need a relatively secure investment, rose $23.20 to $911.70 on the Nymex.
It's a financial panic day.
Tracking the Dow On Monday:29/09/08.(Black Monday)


9:30am:--150.0 points crash.
Disappointment over the details of the recently reached agreement between Congress and the White House on the $700 bailout deal and news that several European financial firms were bailed out.
10:30am:--Shooting Stars.
The credit markets remain very tight, with dollar Libor -- which measures what banks charge each other to lend dollars over terms ranging from overnight to one year -- remaining at extremely elevated levels across all terms.
11:30am:--Bearish dojis and hammer.
Energy stocks (-5.8%) are posting the sharpest decline as crude oil futures fall 6.1%. The financial sector is down 4.8% and the tech sector is down 4.7%.
12:30pm:--Hangman.
Stocks drop to session lows. Citigroup (C 20.42, +0.27) had its "AA-/A1+" counterparty credit rating put on CreditWatch negative at Standard & Poor's.
1:30pm:--Graveyard dojis.
The House of Representatives is voting on the $700 financial plan, called the Emergency Economic Stabilization Act.

2:30pm:--Shooting Stars.
The current Emergency Economic Stabilization Act vote tally comes at 207 for the plan, 226 against, with one vote remaining. A total of 218 votes were needed to pass the vote. House members can still change their vote, and as a result the number of yes votes did tick a few points higher.
Democrats voted 141 for, 94 against. Republicans voted 66 for, 132 against.
3:30pm:--Indicies nosedive.
Disappointment over the House's failure to pass the Emergency Stabilization Act of 2008.
4:00pm:--A Black day two weeks earlier than the October crash.

Total wipe off for September with the 52 weeks low being established.
Overseas markets also tumbled, with clear signs that the global financial system is strained. Three European governments bailed out Belgian bank Fortis, the U.K. nationalized mortgage lender Bradford & Bingley and Germany's Hypo Real Estate Holding was rescued by a consortium, according to The Wall Street Journal.

Bailout plans stuck.

A U.S. financial bailout plan remained stuck in legislative limbo, raising investor worries that the economic crisis could deepen. The $700 billion rescue package resolution remain in jeopardy.

Negotiations continued Friday to revive the White House-backed initiative, a day after talks broke down in heated disagreement over the scope and cost of the unprecedented government intervention. The measure would remove billions of dollars in bad mortgages and other risky assets from banks' balance sheets in a bid to calm frenetic financial markets and soothe a jittery public.

Some conservative GOP lawmakers Thursday denounced the plan as an unnecessary federal intrusion into the private sector and proposed a dramatically different scheme under which financial firms with bad assets would pay the Treasury to insure them, rather than sell them outright to the government. It was unclear what form the final proposal would take, though lawmakers from both parties reported making progress on a plan late Friday.

Tracking the Dow on Friday:26/09/08
9:30am:--A 100.0 points gap down with a bottom spin.
The Fed has brokered another deal for JPMorgan Chase (JPM).
10:30am:--Filling back half the gap.
The failure of Washington Mutual is being reported as the largest bank failure in U.S. history.
11:30am:--Pullback to session MAV.
The second quarter GDP indicated the economy expanded at 2.8%, which is below the 3.3% increase previously indicated.
12:30pm:--Bullish Harami.
President Bush just concluded a speech assuring that an agreement to fund financial companies will be reached.
1:30pm:--Bulls holding at day's opening.
Getting for the breakout.Consumer sentiment came in at 70.3, according to the University of Michigan sentiment index. The consensus called for a reading of 70.8.
2:30pm:-- Consolidating at day's opening price.
Political infighting is undermining negotiations for a plan to purchase ailing assets from financial firms. Just yesterday it seemed the plan was nearing approval. Now uncertainty lingers.
3:30pm:--Two ascending soldiers.
With only a few days remaining in the third quarter, economic data pertaining to the second quarter is of little issue anymore. In turn, market participants looked past lowered second quarter real GDP data.The final real GDP reading indicated the economy expanded at an annual rate of 2.8% from the prior reading of 3.3%
4:00pm:--Bearish engulfing.
A weak open might follow suit before it propell again.
Friday's bullish reversal body has covered part of Monday's candlestick.
To fully recover another 200.0 odd points before month's end is a possibility as it is also the pivot month of the Dow Futures.
Futhermore most of the futures market in Asia are due for expiry this month end.
Any sucess in the rescue deal package can bring the market another lift-off.

Finally to admit Recession.

President Bush summoned Barack Obama, John McCain and legislative leaders to an extraordinary White House summit, warning Americans and Congress on Wednesday night that failing to act on a $700 billion financial industry bailout could lead to "a long and painful recession."
Earlier, Paulson agreed to demands from critics in both parties to limit the pay packages of Wall Street executives whose companies would benefit from the proposed bailout.
The American people are angry about executive compensation and rightfully so," Paulson told the House Financial Services Committee. "We must find a way to address this in the legislation without undermining the effectiveness of the program."
Tracking the Dow on Wednesday,24/09/08
9:30am:--Gap up about 30.0 points.
A hangman follow suit.
Higher start, aided by news that one of the world's most revered investors Warren Buffett's Berkshire Hathaway (BRK.A) bought $5 billion perpetual preferred stock from Goldman Sachs (GS).
10:30am:--Hammering a downtrend.
Lawmakers continue to discuss the $700 billion plan to ease the credit market turmoil -- Fed Chairman Bernanke testifies on economic outlook before the Joint Economic Committee at 10:00 AM ET and Bernanke and Treasury Secretary Paulson testify before the House financial services at 2:30 PM ET.
11:30am:--Technical rebound to MAV.
August existing home sales fell 2.2% to an annual seasonally adjusted rate of 4.91 million, according to the National Association of Realtors.
12:30pm:--Bearish Harami.
Bernanke said in his prepared remarks that there are "grave threats" to U.S. financial stability.
Credit markets remain tight, demonstrated by the dollar lending rate banks charge to other banks, known as the Libor, climbing across all terms except the overnight.
1:30pm:--Shooting star at session high.
Buffet's deal,the market originally cheered the news but some enthusiasm faded on the recognition that Buffet's purchase was opportunistic in nature.
2:30pm:--a second shooting star before it collapse again.
Paulson stated the troubled asset purchase program is the single most effective move to help homeowners, citizens, and the economy.
3:30pm:--Bearish Harami.
The Treasury's proposal to buy up to $700 billion in illiquid assets from financial institutions remains in focus. Fed Chairman Bernanke stated before the Joint Economic Committee that the stabilization of the financial system is key to an economic recovery since the crisis is affecting the broader economy.
4:00pm:--Ascending soldiers.
Action was underscored by light volume as traders assessed testimonies from key financial officials and continue awaiting a clear indication whether an asset funding plan will win approval. Their reservation overshadowed a symbolic vote of confidence from a renowned investor.
The bearish harami pair signals the filling up again of last Thursday candlestick.
Economic activity appears to be decelerating,the primary culprit undermining economic growth has been a weak housing market

Shorties booted.

The SEC passed its emergency rules last week after a global market rout threatened the survival of financial companies. The measures forced hedge funds to reveal short positions and barred investors betting on stock-price declines at 799 banks, insurers and securities firms.
In a short sale, traders borrow shares from their broker that they then sell. If the price drops, they buy back the stock, return it to their broker and pocket the difference.
Tracking the Dow on Monday.22/09/08.

9:30am:--60.0 points gap down.
Hewlett-Packard (HPQ) authorized an additional $8 billion for share repurchases.
10:30am:--Hammer
Oct crude makes fresh session highs above the $110 mark at $110.56, up $6.01 on the day (COMDX) : The spread to the Nov contract is +3.04
11:30am:--Bearish inverted hammer.
Moody's says US government Aaa rating remains unshaken.
12:30pm:--Two advancing soldiers.
It's a technical rebound but till this time no sign of filling the gap so the recovery is gone.
1:30pm:--Bearish hammer.
Fitch Ratings has downgraded the Issuer Default Rating of General Motors by one notch to 'CCC'
from 'B-', due to diminishing liquidity and lack of access to capital.
2:30pm:--Shooting stars.
Washington Mutual: Moody's downgrades WaMu financial strength to E; bank deposits remain at Baa3, with review for downgrade (WM) 3.50 -0.75 : Moody's downgraded the financial strength rating of Washington Mutual Bank to E from D+. Additionally, Washington Mutual preferred stock was downgraded to Ca from B2. All ratings of Washington Mutual Bank (deposits and senior unsecured at Baa3, subordinate debt at Ba1, short term Prime-3) and Washington Mutual (senior unsecured at Ba2, subordinate at Ba3, preferred at Ca) were placed under review for downgrade.
3:30pm:--Bearish hammer.
The downgrade of the Bank Financial Strength Rating resulted from WaMu's severe asset quality issues which are depleting its capital base and leading to an erosion of its franchise. These issues are substantially limiting WaMu's financial flexibility and potentially preventing it from replenishing capital and preserving diversified and stable funding sources. This could lead to the acquisition of WaMu by a stronger financial institution with or without regulatory assistance.
4:00pm:--Bullish Harami with spinning close.
A rebound in place.

The bearish harami cover with a small tail on the neckline versus the previous day's session.
Look forward to a rebound.

Edmond De Rothschild

Bank of China Ltd, the nation's third-largest by value, will buy a 20 percent stake in La Compagnie Financiere Edmond De Rothschild for 236 million euros ($342 million) to start an asset-management venture.
Benjamin de Rothschild, chairman of the supervisory board, will keep a 75 percent stake in LCF Edmond de Rothschild and Bank of China will be the second-largest shareholder in the asset-management company, according to the statement. The firm managed 29.6 billion euros in assets at the end of 2007.
Compagnie Financiere Edmond de Rothschild, which started operations in Shanghai two years ago, is among the latest international fund managers to start operations in the country to tap growing personal incomes and sovereign wealth funds.
Tracking the Dow on Friday,19/09/09. (QUADAPLE WITCHING DAY)
9:30am:--Hefty 200.0 points gap-up.
An extension of the prior session's rally.
The Treasury will unveil a $50 billion plan that guarantees money market funds. The Treasury will insure public money funds for a fee. The plan is intended to help restore confidence within the banking system.
10:30am:-- Partial gap filling,3 black devils.
The Federal Reserve is announcing plans to help stabilize money market funds with loans to banks. The Fed will provide a liquidity facility to help provide backstops by purchasing notes from primary dealers.
11:30am:--3 black devils.
Treasury Secretary Paulson announces in a speech that further decisive action is needed to restore confidence in the financial system.
12:30pm:--Bearish graveyard with bull-trap.
Oil prices are up 1.7% to $99.50 per barrel.
1:30pm:--Hangman & dojis.
The Fed will begin purchasing short-term debt issued by Fannie Mae (FNM 0.70, +0.21) and Freddie Mac (FRE 0.55, +0.22).
2:30pm:--Bearish hammers.
Crude has rallied to its highest point of the week, recently crossing above $105 per barrel.
3:30pm:--Bearish engulfing.
To further enhance confidence among investors, the Fed is planning to sell insurance that covers money market mutual funds.
4:00pm:--Bearish harami and hammer.
It's going to be a bull-trap.
Some investors were encouraged by a ruling from the Securities Exchange Commission that put a temporary ban on short-selling certain financial stocks. Though the plan aims to protect certain securities and restore confidence, the plan has come under sharp criticism from market makers. Late in the session the SEC staff announced it wants to implement certain exemptions to the rule.
This month candlestick todate is shape like a sword (DOJI).The long lower shadow is going to be a bit of concern.Ban short-selling,what about securities lending?the loophole.

Witching Dow.

It's the first anniversary of the credit and housing mortgage turmoil and this week we are seeing the final chapter of the act---the financial turmoil.
Seems that the witches are having a great time destabilising the world's financial markets and cleverly choosing the right day and timing in this quaterly agenda.
The short-sellers are again the main culprits and these manipulators normally deal with index futures and stock options derivatives out to rob the financial system.
It's a daylight financial robbery and the mafias are the hedge-funds who are really abusive in practise and manipulating the markets in their favours and are willing to destroy their own country's economy.
TRACKING the Dow on Thursday 18/09/08
QUADRAPLE WITCHING DAY:19/09/08.


9:30am--180.0 points gap up.
The better than expected Philly fed reading helped the early boost.
10:30am--Shooting Star.
As usual the puulback at this time to fill the gap.
11:30am--Inverted hammer.
Worries about trouble at money market funds resurfaced.
12:30pm--Bearish hammer.
Failure to break the MAV earlier so another bottom hammering.U.S. jobless claims rose 10,000 to 455,000 in the week ended Sept. 13
1:30pm--Bullish marubozu.
Trading session is now reversing to morning high. The Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank announced coordinated liquidity measures for global markets.
2:30pm--Holding at day's MAV.
The current moment candlestick has turned bullish with a 100.0 points lower shadow.
3:30pm--The breakout.
A CNBC report late in Thursday's session said that Treasury Secretary Henry Paulson might be working on a Resolution Trust Corp.-type solution to the current financial crisis, which many observers have urged. The RTC was created to clean up the 1980s savings and loan mess.
4:00pm--Bullish harami.
The wicked witches of the Dow continues its mayhem.

The neckline or the breakout line is abot to be penetrated again.The Wed and Thurs pair of candlestick looks like a billish engulfing or can be interpreted as a bullish harami.A star is born.

China's exposure.

The U.S. Treasury's takeover of Fannie Mae and Freddie Mac is good news in the short term for China, the biggest holder of the giant mortgage lenders' debt, but Beijing's huge U.S. exposure still poses a serious risk, a prominent government researcher said on Monday.
China owned $376 billion of debt issued by U.S. government agencies, principally Fannie and Freddie, as of mid-2007.
The seizure of the two firms, prompted by worries over their shrinking capital, was the latest in a series of emergency steps taken by U.S. authorities to quell a year-long credit crisis that has helped push many economies toward recession.
The Treasury's equity stake could reach $100 billion in each of the lenders, which own or guarantee almost half of America's $12 trillion in home loans, but it said the ultimate cost of the rescue plan depends on how well the companies perform.
Bank of China said on August 29 it had slashed its exposure to Fannie and Freddie to $12.67 billion as of August 25 from $17.3 billion at the end of June.
Vice-Premier Wang Qishan, who is in overall charge of economic and financial policies, did not comment directly on the two agencies' woes. But, speaking in the southern city of Xiamen, he said the credit crisis was having "quite a serious impact."
Although the takeover of the mortgage lenders was a reminder of the investment risks China is taking, He said the country had little room to diversify its $1.8 trillion in currency reserves.
Buying non-government dollar bonds would be even riskier, while the euro is expensive and yields in Japan are low.
"If we don't buy U.S. treasuries and ABS, what else we can buy?" He said. "China just has no way to avoid the risks. Whatever we do, we have to bear the losses."
There was a vigorous reaction among Chinese Internet users.
A blogger on www.163.com said "a capitalist country is now acting to save the market and protect investors," whereas China's government had sat idly by during a 64 percent plunge in the Shanghai stock market since last October.
"How can Chinese stock investors not be sad? How can they not lose confidence?" the post said.
The main Shanghai index (^SSEC - News) shed 2 percent on Monday, touching a fresh 20-month low, despite a rally elsewhere in Asia triggered by the takeover of the two firms.
"Hope that China's stock market will get government help like Fannie Mae and Freddie Mac, not just lip service," a blogger named "Bang Ni" on sina.com.cn said.

Tracking the Dow on Friday,12/09/08

QUADRAPLE WITCHING DAY:19/09/08

9:30am:--Bearish 80.0 points gap.
The Treasury and the Fed are working on the sale of Lehman Brothers (LEH) through a consortium of firms.
10:30am:--Shooting stars.
Energy is trading with the largest gain among the ten economic sectors.
11:30am:--Shooting Stars.
The University of Michigan Preliminary Consumer Confidence Report for September came in at 73.1, reflecting substantial improvement from the 63.0 registered in the prior month.
12:30am:--Bearish Hammer.
Stocks continue to trade in choppy fashion.
1:30pm:--Morning star
Producer prices declined 0.9% in August (consensus -0.5%) after increasing 1.2% in July and 1.8% in June. Core PPI, which excludes food and energy, rose 0.2%, in-line with expectations.
2:30pm:--Dragonfly Doji.
CNBC reports that AIG (AIG 13.36, -4.19) may announce a turnaround plan before Sept. 25. The insurance giant is trading with a massive 24% loss.
3:30pm:--Hammering bulls at MAV line.
As for Washington Mutual (WM 2.77, -0.06), a midday report that JPMorgan Chase (JPM 41.17, -0.48) is in advanced discussions to acquire the downtrodden savings and loan institution led to a recovery effort. However, JPMorgan stymied the rally when it came out to say it is not in negotiations, according to CNBC.
4:00pm:--Ascending soldiers.
The advance continues to spill over.
Friday's dragonfly doji looks a bit of a bearish spin but resting near the breakout point.
It can still propel upward powerfully and also jolted it down to the bear pivot line.
Lehman Brothers is still the main culprit of the day.

Wild wild Dow.

Another wild ride with the underlying trends decidedly bearish following Friday's unemployment report that the jobless rate has spiked to 6.1%.The environment is getting volatile.
Imagine it fall 150 points during the session and sudden swing back.
Now investors are getting nervous about this third-quarter earnings.
Lower commodity prices, especially crude oil's decline, helps take pressure off the Federal Reserve on the need to hike interest rates, with the market most recently pricing in expectations of the central bank to let rates stand at its September and October meetings, and starting to build in an expectation of a 25-basis-point cut, which would take the rate down to 1.75%.
International stock markets stumbled at he expense of the Dow.

Tracking The Dow on 05/09/08.(Friday)
Quadraple Witching Day:19/09/08.

9:30am:--A 40.0 points gap-down.
Nonfarm payrolls fell 84,000 during August, bringing the unemployment rate to 6.1%, according to the latest government statistics. Payrolls were expected to decline 75,000 after shedding 60,000 jobs in July

10:30am:--Bearish Hammer.
It's session low and bearish.
11:30am:--Unshaven bulls.
Just released, mortgage delinquencies totaled 6.41% during the second quarter. That is up from the prior reading of 6.35%
12:30am:--Morning Stars.
Oil is now down more than 2% to trade around below $106 per barrel.
1:30am:--Dragonfly doji.
The dollar (+0.4%) is trading higher for the seventh consecutive day, benefiting from concerns regarding the state of world economies.
2:30am:--Bearish Doji.
Buying in financials (+1.8%), the second largest economic sector behind technology (+0.1%), also helped lift the broader market
3:30am:--Bullish spin.
Financials garnered attention after Reuters reported that Blackstone Group (BX 16.43, -0.31) and KKR are each looking to buy parts of Lehman Brothers (LEH 16.20, +1.03).
4:00pm:--Two Black Crows.

A bullish dragonfly on Friday looking for short-covering.This is the character of Mr.Dow facing a quadraple witching month.
We have to fasten our seat belt in this roller-coaster game plan by the manipulators.

Coke acqusition

Coca-Cola said on Wednesday it has offered to buy Huiyuan Juice Group, China's largest fruit juice company, for the equivalent of $2.4 billion in cash, in what would be the second-largest acquisition in the US-based company's history.
Coke said the offer needed to be approved by the Chinese government.
If successful, the acquisition of Huiyuan would represent the largest purchase of a controlling stake in a Chinese company by a foreign company, according to Thomsom Reuters.
Coca-Cola is offering HK$12.20 ($1.56) per share and an equivalent price for outstanding convertible bonds and options. It said it has accepted irrevocable undertakings from three major shareholders for acceptance of the offers, in aggregate representing approximately 66 percent of the Huiyuan shares.
"Huiyuan is a long-established and successful juice brand in China and is highly complementary to the Coca-Cola China business, " said Muhtar Kent, president of Coca-Cola.
Tracking the Dow on Wednesday,03/09/08.
QUADRAPLE WITHCHING DAY:19/09/08.

9:30am:--Graveyard Doji open.
Shares of Corning (GLW 18.01, -1.49) are plummeting after the company issued a third quarter earnings warning due to lower-than-expected LCD glass shipments. Likewise, ConAgra (CAG 19.82, -1.64) issued downside earnings guidance for its next quarter due to underperformance in its consumer foods business.
10:30am:--Drangonfly Doji
Factory orders remain surprisingly strong, with the fifth straight month of positive growth.
11:30am:--Bears command.
Standard & Poor's downgraded the credit ratings of regional banks First Horizon (FHN 11.05, -0.64) and National City (NCC 4.93, -0.13).
12:30am:--Technical recound to MAV
Crude prices (-1.4% at $108.23) have declined for the fourth straight day, marking a 36% retreat from the July 11 all-time high.Commodity related stocks are once again under pressure.
1:30pm:--Multiple spinning dojis with drgonfly.
The Fed sees moderate wage pressure as hiring slows and that almost all districts are seeing price pressures. Fed also says mortgage loan demand is weakening and economic activity has been slow.
2:30pm:--Morning Stars.
Stocks trade in a volatile manner as market participants digest the Fed's Beige Book. The report said economic activity has been slow in most of the 12 Federal Reserve districts.
3:30pm:--Bulls spike.
Shares of General Motors (GM 11.36, +0.71) rose 6.7% after the automaker posted a smaller-than-expected decline in August sales.
In other corporate news, Coca-Cola (KO 51.67, -0.29) is buying a Chinese juice company in a deal valued at roughly $2.4 billion.
4:00pm:--Evening Stars.
Profit taking to follow.

Wednesday's candlestick has found its low at last week same day level.The long lower shadow is bound to be covered and filled-up again.It's going to be another volatile session.