Mong

Far From a Bottom in Financials

dear FX trader. Addressing your points

a. write backs of written down loans is possible, but not when housing market is worsening badly. Not all the news has been reflected in the figures. Hence the downtrend in stocks will continue.

b. consumers are in very bad shape. The Nov cure is too far off to contemplate. So, stocks will continue falling.

c. Flow of foreign funds into the USA will come when matters have stabalised. Not whilst things are crashing. So, stocks will continue falling.


The technicals are very oversold. The recovery will be fierce. As always cover your shorts quickly.

Best of luck.