Daytrading to earn a living: Inflation concern.

Inflation concerns have gripped markets world-wide -- China's stock market dropped 7.7 percent yesterday after the government announced plans to take some money out of its financial system to curb inflation. The inflation rate there is 8 percent; in Vietnam, it's a whopping 25 percent, resulting in a move by the government that effectively devalued the currency. Federal Reserve and European Central Bank officials have begun to ratchet up the volume on inflation concerns. The topic will take center stage at a meeting of G-8 finance ministers at the end of the week.
"The latest round of increases in energy prices has added to the upside risks to inflation and inflation expectations," Bernanke said. The Fed will "strongly resist" an erosion of longer-term inflation expectations

Tracking the Dow on Wednesday,11/06/08

09:30am--Bearish Spike of 40.0 points.
Several Fed officials will be speaking today, include Vice Chairman Donald Kohn (11:30 ET). The beige book -- anecdotal evidence on economic conditions -- is set for release at 2:00 ET.
10:30am--Hangman,Hammer,Bear.
No sign of gap covering.Index still hoovering at session low.Main candlestick:190.0 points long black bar.Can't do anything.
11:30am--A morning star.
Any technical rebound will be shortlive near the session MAV.Just hitting the wires, crude inventories for the week ended June 6 fell by 4.6 million barrels, which is larger than the expected decrease of 1.5 million barrels. Crude was trading up 3.1% to $135.26 per barrel just prior to the release.
12:30pm--Graveyard Dojis.
The stock market falls back toward session lows as headlines from Fed Reserve Vice Chairman Kohn hit the wires. Kohn said anchoring inflation expectations "is critical" and that the gain in oil prices is raising consumer inflation expectations.
1:30pm--Bearish hammer.
Weakness is broad-based, Co Oil is doing its thing again today, with prices topping $137 per barrel in the past half-hour.Commodities are having a better day, with the CRB Index up 2.2% as the dollar slides 0.7%.

2:30pm--Rebound to MAV with another bulliush hammering candlestick.
Broad-based buying interest lifts the stock market, although it is still posting a large loss of roughly 1%. The energy sector stands alone in positive territory.
3:30pm--The last shooting star.
The major indices are trading at or near their session lows, in a broad-based retreat. Financials (-2.7%) and telecom (-2.7%) are posting the largest losses.
4:00pm--Downslide with graveyard doji.
An ugly scene today with bloody fallen heroes soldiers of fortune.The Fed's Beige Book -- which contains anecdotal economic information from the 12 Fed districts -- expressed evidence of increased inflation.