The Dow's Halloween Scare.

Halloween is practiced in United States, England, Ireland, Scotland, Wales, Canada, and occasionally in Australia and New Zealand.The big beneficiaries of Halloween are the candy companies,costumes retailers and of course the pumpkin sellers.

One of the most simplified statements designed to give the retail investor an early scare ahead of Halloween is this headline from the Financial Times of Sept. 27: "Bear market has begun." It doesn't get more direct than that!

But the granddaddy of the major news wire stories by far was the MSN news headline of Oct. 5: "Is a Global Crash Coming? (Report warnings world's economy is at risk)."

So,whenever you start seeing pictures of bears in the financial press it is time to buy stocks with both hands.

Financial rumours have emerge of late as most of these medias are privately owned or might have kickbacks for the writeup which only benefits certain individuals or shareholders.These insiders campaign of wrapping up the market and then luring the public back again has been an ongoing affairs.

The Dow 0n Monday,26/10/09 is 19 days to index futures expiry.

We are 6 more days to Halloween Day.

9:30am:--Bullish inverted hammer.

10:30am:--Bearis harami hammer.

11:30am:--Halloween scare bearish spike.

12:30noon:--Morning session low with dragonfly doji,retracement.

1:30pm:--Bullish engulfing.

2;30pm:--Double bottom with bullish inverted hammer.

3:30pm:--Triple bottom with many dragonfly dojis.

4:00pm:--A smallish dragonfly doji...advance third quarter GDP announcement is on Thursday.

The chart shows alternating two bears with a bull,so look forward to another short-covering before the halloween financial analyst or ratings companies give another pumpkin scare.

The overall October candlestick pattern as todate has a long upper shadow which is a good foreplay for the bulls when the bears unwind their positions for the winter holidays.Repositoning by the some of the investment funds will provide the bulls with a little bit of cushion.

**blogger here will be off backpacking to Thailand for two weeks.

The October 1929 crash anniversary.

October 24, 1929 was the day the Great Depression started.The crash of 1929, like the current global economic crisis, came after a prolonged period of economic growth.

October 24, 1929, known as Black Thursday, marked the first day of the crash with panic selling ensuing on the Dow Jones. This was triggered by predictions of an impending market crash, leading to a record 13m shares being traded.

On October 29, “Black Tuesday,” 16 million shares were traded and prices collapsed. The crash began a 10-year economic slump that affected all the Western industrialized countries.Panic selling brought Wall Street and much of the nation's financial market to its knees.

Then again on October 19, 1987, panic selling brought about the biggest drop in stock market prices ever, including the crash of 1929. More than 604 million shares were traded on this date in history.

The Asian Financial Crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion.

The crisis started in Thailand with the financial collapse of the Thai baht caused by the decision of the Thai government to float the baht, cutting its peg to the USD, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven. At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. As the crisis spread, most of Southeast Asia and Japan saw slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt.

So you need to pay attention to this whether superstitious or not.It's a 10 years cyclical affair.

History repeat itself...1720(South Sea Bubble),1825(Napoleonic Wars),1866(Quaker East Anglia, Overend, bank in distress second to Bank of England))

The Dow on Friday,23/10/09 is 20 market days to index furutes expiry.
Today is One Day to the Great October Crash 1929 Anniversary.

The Bull Pivot is now in danger of being pierced through.It has been hammered 3 times and the worst scenerio is now the pullback to October month MAV.Thursday must be the last call for Asian indicies,7 days prior to expiry.Thailand was given the crash a week earlier and this might be a prelude to other Asian bourses.

Thai market manipulators under scrutiny.

Taking advantage of a weak situational financial market in view of an ever extending stock market bull run,two foreign brokers - Credit Suisse(Hong Kong) and UBS(Singapore) - and a prominent Thai investor have come under special scrutiny for large trading transactions made last week on the Stock Exchange of Thailand.

Their theme play:"the health of His Majesty Thai King Bhumibol Adulyadez"
The SET index crash more than 7% over two days closing at 692.72 points on Oct 15, rebounded to reach 731.61 at the close last Monday after doctors issued public statements that His Majesty's health was stable.
An irresponsible act in disseminating financial rumours for their own greed and benefits by these people are now under investigations by the Securities and Exchange Commission.
Thirachai Phuvanatnaranubala, the secretary-general said short-selling volume totalled 461 million baht from Oct 7-13, of which one investor alone was responsible for 204 million. Short-selling is a trading technique used by investors in anticipation of a decline in share prices.
The unidentified investor also sold directly 28 million baht worth of stock, for total transactions of 232 million.
From Oct 14-16, the same investor purchased 52 million baht worth of stock to cover the short positions and purchased another 129 million directly.
On Oct 14, Credit Suisse submitted sell orders for 3 billion baht worth of Thai stock on behalf of unknown clients while UBS Singapore sold 1.3 billion. On the next day, Credit Suisse submitted buy orders of 3 billion baht.
The SEC also discovered that one Thai national residing overseas sold 219 million baht in shares on Oct 14, while on Oct 15, another Thai national purchased 145 million. Regulators said both transactions were not being treated as unusual. The SEC is seeking additional information from the SET and the Thailand Futures Exchange on trading transactions made during the period.
Mr Thirachai stressed that the trades did not necessarily indicate share manipulation, only that the large values deserved "special attention" because of the high potential for profits during the wide market swings last week.
The SEC was directly responsible for trading in the capital market, the responsibility for investigating the source of the rumours was the Special Branch Police, in collaboration with the Foreign Ministry and National Security Council.

The Dow,Thursday 22nd october is 21 days to index/options expiry.
Another day of FOMC meeting.
9:30am:--An inverted bullish hammer head start... overseas markets fall.

10:30am:--After an early low,session now holding at bull pivot with bullish inverted hammer noted...initial jobless claims disappoint.

11:30am:--New session high with bearish spin...leading indicators for September increased 1.0%

12:30noon:--Pullback time for morning session from its high currently holding at bullpivot with bullish engulfing...The Dollar Index is up 0.3% .

1:30pm:--Another high with further inverted hammer.

2:30pm:--FOMC minutes underway...ascending soldiers.

3:30pm:--Day's high with bearish engulfing...profit taking.

4:00pm:--Bullish bulls still holding.

The theme play:-good batch of earnings reports and forecasts .The shorties covered back positions after 2 days of sell-off,the work of hedge funds who have earlier downgraded some companies using the fear tactics.

7 days before asian index futures expiry this phenomena will always happen as they are also in control of these markets.
Downbeat note from influential banking analyst Richard Bove saying sell Wells Fargo.This guy trying to test market reactions so he might be the main benefactor this time."It just shows you how susceptible we are to bad news right now," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco. "We've got such an extended stock market that a feather of news is enough to cascade it down 100 points."

Sri Langka's hedge fund king.

Billionaire Sri Lankan-born hedge fund manager Raj Rajaratnam,52 was a major investor in Sri Lanka’s small $10 billion bourse, among the world’s best performers this year.Murtaza Jafferjee, chief executive of JB Securities, a private brokerage in Colombo,manages Rajaratnam’s Galleon Group investments in Sri Lanka until three years ago.

He attended primary school in Sri Lanka before going abroad with his parents. His arrest was front-page news on the island. He was reported by the US magazine Forbes to have studied in Britain and the United States before creating the hedge fund, believed to manage at least $6 billion in assets.

According to public documents, Rajaratnam is the single largest investor in Sri Lanka’s biggest quoted company, John Keells Holdings, a conglomerate with interests from banking to ports and hotels. He holds a 9.2 percent personal stake in the company. Rajaratnam has large holdings in other Sri Lankan blue-chips companies such as Commercial Bank and two brokerage houses. “He’s been quietly trimming his portfolio in the past few months, making use of the booming market sentiment to make capital gains,” Jafferjee said.

Unfortunately his activities has been phone-tapped by US Federal agents and was one of six people arrested Oct. 16 for alleged insider trading, is free on $100 million bail

Founded in 1997, the firm was one of the three largest managers of technology hedge funds along with Lawrence Bowman’s Bowman Technology Fund, which closed in 2001, and Daniel Benton’s Andor Capital Management LLC, which shut down last year.

The Dow on wednesday,21/10/09 is 22days to index futures expiry.
One day to FOMC minutes meeting.
9:30am:--A dragonflydoji open.

10:30am:--An early high,a bullish hammer,bearish harami.

11:30am:--Pullback to hourly session bull pivot(support) with bearish harami.

12:30noon:--Holding at bull pivot with spinning top dojis.

1:30pm:--Hitting the bull pivot suport 2nd time.

2:30pm:--Bull pivot support undersiege for 3rd time with bearish engulfing.

3:30pm:--Bears attack with graveyard doji.

4:00pm:--Closes at the low of the day,near unshaven bottom.

The bull pivot is now taking the job of support line is being hit twice.There seems to be pressure building up.The index touches another October high.
Comments from Bank of England governor Mervyn King that indicated consumers should be prepared for rising interest rates in the future and that new regulations won't prevent failures of big banks added salt to the market.

The Beige Book stated that most sectors are stabilizing or seeing modest improvement, but commercial real estate is one of the weakest sectors.

The housing index factor.

A disappointing report on housing starts made investors nervous about the economy Tuesday and sent stocks lower even as profits at many companies exceed expectations.

The market will get another measure of the housing market's health Friday with a report on existing home sales.

Housing starts means the number of residential building construction projects begun during a specific period of time, usually a month; a key economic indicator.The latest reports are only a slight decrease but wall street traders are fast to take this as an excuse to lock in profits.

The NAR Public Affairs Office issues a news release on or near the 25th of each month with the latest existing-home sales figures. The releases include analysis and quotes by NAR's Chief Economist Lawrence Yun(photo) regarding the sales volume, prices, inventory and interest rates.

Next release: Existing-Home Sales for September 2009 will be released on October 23, 2009, 10am ET.

The Dow on tuesday,20/10/09 is now 23 days to index futures expiry.
Asian index futures;8 days to go.
9:30am:--Bearish hangman spike open.

Better-than-expected companies earnings means selling the news.

10:30am:--First hour low retracement to MAV 1.

The Producer Price Index for September made a month-over-month decrease of 0.6%.

11:30am:--Bearish spike to a new hourly low with dragonfly doji checkmate.

Housing starts for September came in at 590,000, shy of the 610,000 unit rate expected.

12:30noon:--Hoovering near the low ending morning session with bullish harami follows.

Swings in the dollar have had a significant impact on trading this session.

1:30pm:--Dancing around the bear pivot,directionless.

A bounce by the U.S. dollar also undercut stocks; basic materials stocks and energy stocks were hit particularly hard, given their correlation to commodity prices.

2:30pm:--A bullish engulfing.

There is no leadership to the broader market.

3:30pm:--late retracement to MAV2 with spinning top.

4:00pm:--Bullish harami.

A rebound.

It's quite an agenda that 7 days before any index futures expiry,the Dow being world market leaders will make a pullback or retracement.Since it has earlier hammered down,so it's time for a slight reprieve before further volatility emerge again.

Tuesday's Dow has completely covered the body of that on Monday,leaving behind a lower shadow for further foul play.

China's Nasdaq-styled market.

China will launch its long-awaited Nasdaq-style ChiNext board in Shenzhen at the end of October

The Shenzhen Stock Exchange (SSE) said Sunday that the first batch of 28 firms is scheduled to be listed on China's Nasdaq-style on October 30. Shang Fulin, chairman of the Chinese Securities Regulatory Commission, the country's top industry watchdog, said Saturday that the GEM would be launched on October 23.

The companies approved are in the fields of new energy, logistics, outdoor activity equipment, bio- engineering technology, software, medical equipment and medicines.

Despite repeated risk warnings from the regulator, investors' enthusiasm is growing as the opening of the GEM nears.

The Dow Monday,19/10/09...24days to next Index Futures Expiry.
Asian Index Futures:-9 more days to Expiry.
9:30am:--Bullish mild start.

About 400 companies will be announcing results this week.

10:30am:--Bullish spike-up to hourly high.

The U.S. dollar has slipped deeper into the red.

11:30am:--Another high with shooting star.

Many participants have been selling the news of positive earnings surprises from financial outfits ever since Goldman Sachs (GS 186.23, +1.86) beat expectations last week.

12:30noon:--Pullback,no way to reach session MAV.

Commodities are sporting strong gains.

1:30pm:--3 ascending soldiers..peak.

Caterpillar to release its latest quarterly results tomorrow morning before the opening bell.

2:30pm:--Bearish engulfing.

Fed Chairman Bernanke stated that the United States has benefited significantly from Asia's rapid development.

3:30pm:--Pullback to bull pivot support.

Fed says that the fortunes of the United States, Asia, and the rest of the global economy are intertwined.

4:00pm:--Bearish spin.

Follow through weak opening.
The current bull run is still 331.89 points (10,449.85) to reach the next resistance level.

This should not be a problem in view of the thin daily volumes along the way.
Investors were getting more optimistic now with the slew of earnings ahead.
Crude Oil was pushed higher on Monday, following the stock market and extending last week’s rally.

San Joaquin Bank(California)bankrupt

Regulators shut down San Joaquin Bank(pic) based in Bakersfield, California on Friday, marking the 99th failure this year of a federally insured bank.

It had $775 million in assets and $631 million in deposits as of Sept. 29

The FDIC said the bank's deposits will be assumed by Citizens Business Bank, based in Ontario, Calif. Its five branches will reopen Monday as branches of Citizens Business Bank.

Many vulnerable banks are in limbo. Regulators have threatened to close them unless they shore up their balance sheets, but the recession has made it difficult to raise capital or sell assets.

Many of the banks that have failed since the pace accelerated late last year have been small community banks, with less than $1 billion in assets. Failures have been especially concentrated in Georgia, California and Illinois.

Many smaller banks were felled by losses on ordinary loans amid the souring economy, tumbling home prices and spiking unemployment. These loans contrasted with the complex securities favored by Wall Street investment banks that triggered the financial meltdown and global economic.

Seattle-based thrift Washington Mutual Inc. fell in September 2008 with about $307 billion in assets, the largest U.S. bank failure ever. crisis.

California lender IndyMac Bank, shut down in July 2008, was the costliest failure for the insurance fund -- an estimated $10.7 billion loss.

In August, Montgomery, Ala.-based Colonial Bank, a lender in real estate development, became the biggest U.S. bank to fail this year and the sixth-largest in U.S. history, with about $25 billion in assets. It's expected to cost the fund about $2.8 billion.

The Dow on Friday,Index Futures Expiry Day.
Asian index Futures,10market days to go.

9:30am:--A hefty 100.00 points unshaven top bungee jump.
Theme play:Disappointed

10:30am:--Graveyard dojis at session low.

BAC & GElectric poor results.

11:30am:--Bearish inverted hammer,slim chances of opening gap down fully filled.

The U.S. budget deficit hit a record $1.4 trillion in the just-ended fiscal year

12;30noon:--Signs of inverted bull.

Data showing weak consumer sentiment.

1:30pm:--Retracement to MAV met by graveyard dojis.

U.S. industrial production rose in September for a third consecutive month.

2:30pm:--MAV resistance second attempt failled.Hit by bearish dojis.

U.S. crude oil futures rose by 95 cents a barrel to $78.53, their highest settlement price in a year.

3:30pm:--MAV breakout checked by morning star.

4:00pm:--Pullback with a bullish spin.
A bearish hammer aka profit-taking on the last day of index futures expiry.The Friday's bear needs another smaller bear to tango and that will be covering back Wednesday's 14th candlestick before the bulls find its sitting again.
Overall the October's candlestick is still in a bullish formation.

Stocks were also hurt by a report showing a surprise drop in consumer sentiment.

Disappointing results from Bank of America and General Electric also weigh Friday's market.

The psycological barrier.

Alas!!at 1:10pm(eastern time) the Dow hit 10,000 points.It's able to recuperate from its intensive care unit over such a short length of time within a year.

A recovering stock market soothes the psyche as people watch their portfolios and 401(k) retirement accounts being replenished. And if people start spending again, that may persuade more investors, including some reluctant pros, to go back into the market.

On the othe hand the current weakening of the US dollar is a big concern. And this isn't just impacting Americans.This is aiding the Dow's advancement as well as oil commodity.Because oil is denominated in dollars for global trading, it tends to rise when the U.S. currency falls as the commodity becomes cheaper for holders of other currencies.

True,cheaper dollar enhanced increased exports.Asia-Pacific currencies strengthen and these economies will be crying foul soon as the impact will be very great.And the dollar is wreaking havoc in some ways you might not expect.

The weak US dollar is benefiting and boosting US companies bottomline,so expect more positive companies earnings coming out and the Dow's 10,000 mark will remain.

Tracking the Dow,14/10/09(Wednesday) 2days to Index Expiry.
Asian Index Futures Expiry:12 market days.
9:30am:--A powerful bullish inverted hammer opener.

Impressive third quarter reports from bellwethers Intel (INTC) and JPMorgan Chase (JPM).

10:30m:--Pullback to MAV with dragonfly doji.

Advance retail sales for September fell 1.5%, but that wasn't as bad as the 2.1% decline that was widely expected.

11:30am:--Morning session high with slight profit taking bears.

The U.S. dollar dropped to fresh 52-week lows.

12:30noon:--Still hoovering above session bull pivot wit spinning doji.

November crude oil is now $75.15 per barrel

1:30pm:--Holding at near high with inverted bull.

The Dow hit 10,000 for the first time in just over one year.

2:30pm:--Usual time for pullback by completing 4 black crows.

The minutes from the Fed statement indicate that job losses are slowing.

3:30pm:--Spike up to day's high.

4:00pm:Closing above day's bull pivot.

The bulls are now ahead of the bears and currently holding strongly above October's bull-pivot.
A stunning physcological breakthrough of 10,000 mark @ 1:10pm(E.T)It's a confirmed bull run made by those furious hedge funds and instituitions that have sold and hastened the world market collapse in the first place.

This lightning speed of short-covering is also very contagious as it was done on the pivot day of the week and 3 days before index futures expiry.

Sunshine Empire Ponzi Scheme.

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James Phang Wah, 49,the Chief Executive Officer,the man behind multilevel marketer Sunshine Empire, which pulled in $189 million from investors here in Singapore, is facing 20 charges, including running a fraudulent business and criminal breach of trust.
The alleged scam attracted tens of thousands of unwitting investors.

He once claimed to be better than Warren Buffet.

Tracking the Dow,Tuesday 13/10/09.(3 market days to Index Futures Expiry)

Asian Index Futures:(13 market days to expiry)

9:30am:--Bearish open over 30.0 points gap-down.

A downgrade of Goldman Sachs (GS) by Meredith Whitney Advisors has caused a bit of a stir among premarket participants.

10:30am:--First hour low rebounded to MAV.

11:30am:--Bullish inverted hammer MAV breakout.

12:30noon:--Morning session high established with triple bearish dojis.

1:30pm:--A pullback to bull pivot with bearish dojis in distribution .

2:30pm:--Completed pullback to day's MAV support followed by bullish harami.

3:30pm:--Pierced through bull pivot with a shooting star.

4:00pm:--A graveyard doji.

Follow through caution.

The October bulls are now 220.54 points versus the bears with 281.20 points since the month's opening.The bulls are still very weak

A weaker greenback has been a strong underpinning of the stock market's recent gains, but its affect on stocks this session was mitigated by caution among participants ahead of a flurry of upcoming earnings announcements.

Tuesday's session ended with another dragonfly doji but with a small black body.It can also be a hangman.

Glittering gold price soar.

The price of gold soared to a record high above 1,061.52 dollars an ounce on Thursday beating 1,032.70(March 2008), spurred on by a weakening dollar and doubts about the greenback's future as the world's leading reserve currency.

There is a reported secret plan by Gulf states with China, Russia, Japan and France to stop using the dollar for oil trades, British daily The Independent reported on Tuesday, but the story was denied by a number of nations.

The United Nations meanwhile on Tuesday called for a new global reserve currency to end dollar supremacy, which has allowed the United States the "privilege'' of building a huge trade deficit.

They would instead switch "to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council (GCC).The run-up in gold has been largely driven by weakness in the dollar which makes dollar-priced commodities cheaper for holders of stronger currencies, boosting demand.
Gold traditionally wins support from fears about higher inflation because the metal is widely regarded by investors as a safe store of value.
***Gold Futures is traded on the Thailand Futures Exchange.(latest Thai gold futures price).Trading in gold futures derivatives involve risks.

Tracking the Dow ,Friday.09/10/09(5 market days to Index futures Expiry)
Asian Index Futures:(15 market days to Expiry)
9:30am:--Mild weak open with an early low doji.(Morning Star)

Fed Chairman Bernanke, indicated that U.S. monetary policy could be tightened as a recovery takes hold.

10:30am:--Session high with bearish harami.

The U.S. dollar slowly strengthens and climbs up from the 12-month lows that it registered Thursday.

11:30am;--Another session high with hangman.

The trade balance for August showed a smaller-than-expected trade deficit of $30.7 billion.

12:30noon:--End of morning session with no sign of pullback to current MAV with noticeable bullish hammer of downtrend.

1:30pm:--Another new high with inverted hammer bulls.

Crude oil is currently 0.3% higher at $71.87 per barrel.

2:30pm:--Bullish hammer with harami.

Fed Chairman Bernanke put a bid under the dollar by indicating that that the Fed can't continue its policy accommodation indefinitely for fear of triggering inflationary pressure.

3:30pm:--Reached day's high with pullback to bull pivot supported by a bullish engulfing.

This session's advance was solid and broad-based as every major sector, except telecom (-0.8%), finished higher.

4:00pm:--Unshaven bulls closing with further option finding its upper or lower shadow.
The dragonfly doji of previous session has now transformed into a bullish hammer as a today.

The lower shadow might be utilised in following months when market-makers start threatening the market with interest rates jitters.

The Aussies have started the ball rolling being the first country with rates increase.

High volatility might step in as this is also an excuse for fund managers unwinding positions for the year and the long festive holidays ahead.

Simon Cowell 50th Birthday.

Simon Cowell was given 179 mirrors on his 50th birthday.

The music mogul who is known for-- his vanity-- received the items from friends and family for reaching the landmark age of 50.
According to Britain's Daily Mirror newspaper,Simon told a friend,"They came in all shapes and sizes-the big ones,the small ones,the full-length sizes,even dental ones so that I can look at my teeth."

"A couple of people even bought me magnifying ones to help inspect my wrinkles"

However,Simon does not intend to keep the huge hauls of mirrors.

He is going to donate most of them to be auctioned to raise money for Battersea Dogs Home--which cares for abandoned or lost cats and dogs in the UK.

Simon celebrated his birthday with a US$1.6milllion bash at stately home Wrotham Park in Barnet,Hertfordshire,on Saturday night.

The event was a star-studded affair,attended by 400 guests including supermodels,Kate Moss and Naomi Campbell,his fellow"X-factor"judges Cheryll Cole and Dannii Minogue and celebrity chef Gordon Ramsay.

Several of Simon's ex-girldfriends were also in attendance,including Terri Seymour,Sinitta and Jackie St Clair.

Tracking the Dow:Wednesday 07/10/09.(7 market days to index futures expiry)
Nikkei futures expiry:09/10/09.

The Dow index futures timetable,7days before expiry will see market significant spike up and vice-versa.

Wednesday's candlestick is hoovering above the bull pivot and the upper shadow is yet to be lighted again.
Weak turnover volume very easily being manipulated by the market-makers.

Australia's interest rate increase.

The Reserve Bank of Australia yesterday became the first Western central bank to lift interest rates since the onset of the financial crisis, surprising economists with a quarter of a percentage point increase in the cost of borrowing. The first G20 group of leading nations to do so.

The central bank's move, which had not been expected so early, may ignite suspicions that other countries will soon tighten monetary policy. The fact that Australia is the first to make the move is not a surprise. It narrowly managed to avoid recession, despite seeing its economy contracting in the final quarter of 2008, and has been buoyed by exports of commodities to China. Indeed, the country was the only one in the developed world to expand in the first half of the year.

Tracking the Dow:Tuesday06/10/09.(12 market days to index futures expiry)
Nikkei 225 index futures expire 09/10/09

9:30am:--Hefty 70.0 points gap up with unshaven bottom.

A weak dollar and news that Australia raised its rates last night are giving a boost to some of the commodity complex.

10:30am:No sign of pullback to fill up opening gap no at session high.

Advances throughout Europe were impressively spreading into the Dow.

11:30am:--The morning high checked by darkclouds cover.

Banks operating in the UK will be required to hold some 1 billion pounds in government securities to ensure that they have enough liquidity in times of financial stress.

12:30noon:--Shooting star identified.

There weren't any economic releases this session and only a handful of companies made announcements ahead of earnings season's start tomorrow night.

1:30pm:--Pullback hoovering at bull support with bearish inverted hammer.

Commodities were helped considerably by the dollar's decline.
2:30pm:--Another pullback this time to day's MAV support with bullish engulfing.

3:30pm:--Touches the bull pivot which is now the resistance being hit by a graveyard doji.

4:00pm:--Bullish close for a spillover.

The "dragonfly doji" formation as at today is yet another reprieve for the bulls.The bulls were still lagging as the bears lower shadow were more powerful.The chances of forming an upper white candlestick body is very promising in view of the ample time prior to the Dow indx futures expiry.

Tuesday's candlestick is piercing through the weekly bull resistance so there's no more fear of a tremendous pullback.It has already find its early low at the start of October.

The aftermath of financial crisis.

The Asian financial crisis of 10 years ago(1997-1998) has taught a bitter lesson.
The western economists concluded that emerging economies should adopt flexible exchange rates and modern, well-regulated and competitive financial markets. The Asians decided to choose competitive exchange rates, export-led growth and huge accumulations of foreign currency reserves.
When downward pressure on the Thai baht started 10 years ago, nobody expected what followed - its devaluation in early July. That seemingly small event generated a financial tsunami that engulfed most of east Asia and overwhelmed Indonesia, Malaysia, the Philippines, South Korea and Thailand. Exchange rates collapsed, financial systems went bankrupt, governments teetered on the edge of default and economies succumbed to deep recessions. Officials from the International Monetary Fund raced from one crisis-hit country to the next. In its last movements, the crisis went global, overwhelming Russia in August 1998 and Brazil in early 1999.
As surprising as the onset of the Asian crisis has been its aftermath. With the important, but geographically limited, exceptions of Argentina and Turkey in 2001, the crises of 1997-98 have so far been the last in the long series of financial crises that afflicted emerging economies in the 1980s and 1990s.
Today, the desire of outside investors to put their money in these economies is overwhelming, as is shown in the strength of their financial markets, the low spreads on external borrowing and the size of the private capital inflow.
Now the east Asian emerging economies are mostly creditor nations. Moreover, much of their accumulation of external assets is in official hands.The scale of the reserve accumulation demonstrates the obvious: these countries have refused to adopt the freely floating exchange rates many outside economists recommended.
The US has emerged as the world's chief deficit country - its "borrower of last resort". It alone is able to be a vast net borrower without risking the health of its financial system.

Tracking the Dow,01/10/09.(11 market days Dow Futures Expiry)

Nikkei Futures Expiry:(6 maket days)
9:30am:--Bearish unshaven open.

Initial jobless claims for the week ending September 26 totaled 551,000, which is more than the 535,000 claims.

10:30am:--Hoovering at session bear pivot with hangman.

Personal income for August increased 0.2%, which is a bit better than the 0.1% increase that had been widely expected.

11:30am:--Session low with indecision doji.

The International Monetary Fund forecast that the world economy would expand 3.1% next year.

12:30noon:--Bearish harami at near morning low.

Personal income for August increased 0.2%, which is a bit better than the 0.1% increase that had been widely expected.Spending was up 1.3% in August.

1:30pm:--Hitting another low with mild rebound,hangman again.

The ISM Manufacturing Index for September came in at 52.6. That is below the consensus estimate of 54.0 and below the August reading of 52.9.

2:30pm:--Bearish engulfing.

Fed Chairman Bernanke spoke before the House Committee on Financial Services.

3:30pm:--Bearish shooting star at near day's low.

Fed Chairman Bernanke lent support to the U.S. dollar this session by stating that it is at no immediate risk.

4:00pm:--Three black Crows with a bearish spin ending the day.

A possible weak follow through.
The Dow is being shaken by the earthquake in Padang,Sumatera and the tsunami in the Pacific Island of American Samoa.

A follow through undercurrent will be weak aftershock before it finds its feet again,normally takes three bearish day.(San-ten)

The 52 weeks bull support at 9,303.84 points is vital for its survival and it's quite close.

An opportunity to open position for the Dow's revival.