Subprime suspect.

The Justice Dept. and the SEC are investigating Ralph Cioffi,a quiet boy raised in a vermont town 310 miles (500 kilometers) from the Madison Avenue headquarters, who ran the Bear Stearns funds that ignited the credit crisis.
Cioffi joined Bear Stearns in 1985, selling so-called structured products such as bonds backed by mortgages or other loans.Cioffi established a second fund, the High Grade Structured Credit Strategies Enhanced Leverage Fund, in August 2006 because of demand from investors who couldn't get into his first fund.
Mr. Cioffi holds a B.S. degree in Business Administration with distinction from Saint Michael's College - Home , Vermont.
The former manager of the two Bear Stearns (BSC) hedge funds whose collapse last summer sparked the credit crisis. Federal prosecutors are expected to decide by June whether or not to bring charges against him and members of his team. Wall Street is watching closely: If the Justice Dept. can't make a case against Cioffi, a prime figure in the mortgage mess, other criminal investigations may hit a dead end as well.
Investors should not be pulled by the nose from those financial instituitions marketing their exotic products,the values of which were based on internal models deemed fraudulent rather than actual values.
Tracking the Dow on Tuesday,29/04/08.


9:30am--Consumer confidence drops in April on inflation, job worries.Dow component Merck (MRK) is acting as the main drag in the early-going. The company announced the FDA denied approval of its Cordaptive cholesterol drug.Gap-down about 30 points followed by an immediate full-gap recover.The early high set here resembles a graveyard doji.
10:00am--The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier.Bearish spin again.Open a sell-short position.
11:00--Buy-back and close position.Knowing the (H+L)/2=MAV,move-in to long-position waiting to sell at or around MAV.
12:00noon--Buyers are not showing much interest. Market participants were also cautious.Still hold on position.
1:00pm--It has touched the MAV-clear position.
2:00pm--Index still hanging on MAV,cautious about direction.
3:00pm--It's the double top,open a sell-short position.
4:00pm--Close out for additional gain.The final bell saw another bearish spin.

One,two bear spin.The lower half-shadow being done,what about the balance half?Are they going to fill it up and set for the short-covering rebound?yeah,it's always the case.The market-makers are always good at doing it.So gear up for rebound again.
Overall we are still in the bull country.