Many of the news wires will be chirping away tonight and tomorrow about the great gains made today and the full frontal assault being globally co ordinated. Yes, its all great news in the short term but it’s going to produce inflationary issues longer term that eventually we’ll pay for. In my analysis tonight for subscribers I have discussed an extremely important price pattern that will literally ‘break’ investors unless they take heed. I believe this pattern is by far the most important since my March 2007 Special Report.

The other good news about today’s gains is that we’ll start to see some setups being created. As discussed in earlier posts we will get new setups if we remain patient and vigilant. We have a full 12-months to make gains so there is no need to ‘make or break’ the bank in a week or two. Unfortunately the setups currently under development are bearish, and we’ll only be trading the bear side until the major trend changes. I say unfortunately because as at writing we still remain in the dark about the future of short selling in Australia, although one can now conclusively say that market weakness is not being driven by the short sellers. Indeed last nights 11% gain in the Dow Jones was probably driven mainly by short sellers covering. I’d imagine that today’s gains would have been more had short sellers been involved.

Whilst we’re restricted in Australia we will still be watching closely for new short trades developing in the US.