Wriggling economy.

The Valentine's Day menu by the the Federal Reserve chairman was a bad appetiser. He sees a sluggish economic growth ahead and a credit ratings downgrade of FGIC, the fourth-largest bond insurer. The downgrade could lead to more writedowns at banks that own securities covered by the company.

The economy is still in a mess and lack of humidity like the worm wriggling in the hot sun.It's unfortunate to see Ms Dow and Mr Jones having the darkest Valentine unable to secure a good bonded relationship.The bond insurers are themselves in deep shit unable to insure against stock market lovers.

Adding to the sour tune of the day was a former chef,Former Federal Reserve Chairman Alan Greenspan on Thursday who said that the U.S. economy is "clearly on the edge" of a recession. Greenspan said the economy will continue to erode until there is a stabilization of U.S. housing prices."The Edge"....can it mean the end after the market crash since last July 2007 so I presume the end of the slowdown will be by July 2008 so meantime there'll be efforts to stabilize the whole economy by injecting more private and government rescue package.

Data on industrial production for January due at 9:15 a.m.on Friday could shed more light on how the manufacturing sector is holding up.

Tracking the Dow on Thursday,14/02/08.

Credit market turmoil that started last summer with rising defaults among risky mortgage loans has spread to new corners of Wall Street, including the market for securities tied to student loans. The latest hit has been to short-term investments called auction-rate securities-- a popular way for companies and some wealthy investors to store their cash. Some of those investments are backed by the troubled bond insurers.

After three strong days on Wall Street, investors found scant encouragement in Bernanke's testimony and cashed in their gains.It's a bungee jump all through the session and ended the day with another hammer beneath the ground level.The bond insurers are now digging its own grave.

A Bearish Engulfing pair.It's a third Friday of the month with the index futures and options expiry day quite normal for the big boys to shoot down the market and get ready for the two new Dow index counters to be added on the 18th February'08 on Monday.

The mid-month is also the main pivot day of the month and are always a subject of wiping-off gains and vice-versa.