DAX 2 hours

Well Europe still dominating the news and a lot of nervousness...but maybe too much for a serious market break down?

DAX 2 hours support at 5735 if we break down significantly may head to test lows at 5000..BUT probably a lot of market participants looking for the fall so BEWARE if a false break occurs, could be the thing that ignites the SANTA rally...and then head to 7000 before falling again...

be nimble!!

THANKS ! giving

WOW what a rally.....

Still seems a bear rally...very convenient before Thanksgiving...definitely for the govt better than falling before Thanksgiving. The US markets are given a lot of air time in USA so psychologically a big rally ahead of one of the MOST important shopping days in the calendar will definitely give some boost of confidence...how much? Probably not significant...WHO will be borrowing more money??

The best idea so far is from McHugh (www.technicalindicatorindex.com) rebate all taxes paid in last 10 years. This would give the "man on the street" MONEY in his pocket. Raise consumption taxes (VAT, IVA, sales tax etc), and let people DECIDE what to do with their money. Giving BILLIONS to banks will not solve anything...apart form keeping them in the manner they are accustomed to! By giving money to the BASE of the PYRAMID..it will pave a way for a more sustained recovery. NO MORE BAIL OUTS for badly managed companies...let them FAIL...let small to mid size companies take their place..in the future these will be the large companies of today...

The governments can then recoup some on consumption taxes (NOT income), and as the economy improves, so will tax revenues from corporations.

to the chart above

Dow testing the lower channel it broke down out of...so....if we break back in to the channel it may have been a FALSE break lower..and we may stay in channel ( probably need to get above 8930 )...upper line of channel is 10053 so we may get trading range of 8800-10100 for a while..

9600-9800 is RESISTANCE..

IF we break down from here ...WATCH OUT BELOW...

Look at the banking index chart as well..approaching resistance..if it gets through there may reach descending trendline....IF

BAIL OUT? Or time to BALE out?

After much arm bending and the scariness of last Mondays 700 point fall in the DOW, the US govt got their way!! (We knew they would) - the markets rallied ahead of the "expected" then fell on the news - the classic buy the rumour sell the news....

NOW WHAT?? Well...it doesn't REALLY solve anything fundamentally...the real problem is housing and falling prices...something everybody will just have to work through....however what does it mean for the markets?

MY own HO; we are close to a short term bottom..(1-2 weeks away)...then election fever will kick in, a bit of optimism following the initial negative reaction.

another few big down days will have me looking for longs in the markets..will post charts later