The FED and PPT Throw in the Towel!

We have just bounced off the shadowtrader's S4 pivot, last line of defense, and made new lows at 1415.50.
The question is, What now? I think we will at least hit 12,600 Dow, a 10% correction off the 14,000 high.
Not a cataclysm. A 10% correction is sometimes considered healthy. It is the manner in which this has borne out. Pretty much of a free fall lately with no bounce. Lots of intervention by the FED and PPT to no avail. Why? Because the mortgage companies and the hedge funds that deal in the sub-prime market have no way of valuing their inventory of securities. I have traded in 3 crash scenarios, in extreme volatility. I HAVE NEVER HEARD, "we have no way of valuing these securities". If you feel comfortable trading in this market. Widen out your stops, trade with the trend and make a fortune. For those of you that don't, my friend Scott Macbeth has a conservative consistent options trade for you. Check it out! Here is Scott's message:

Good Morning George,
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http://mail.shadowtraders.com/cgi-bin/webmail/login/gfushi@shadowtraders.com/D495478143066B16A957EFDAF2A68343/1187207392?folder=INBOX&form=newmsg&to=rsmacbeth@gmail.com

Subprime and Leverage in Hedge Funds

Just When you thought it was safe to get back in the water............

Goldman Sachs poured $2 billion into one of it's own funds in order to support it and stabilize the markets. They also held a conference call concerning the above. a desperate move to support these markets. They probably did so at the request of Hank Paulson ,their former chief and the current chief of the U.S. Treasury. Hank and the PPT were in all day yesterday, trying to support the market. I don't have a technical indicator for this one but when you have GS, the FED ( adding $40 billion in liquidity in the markets last friday) and the PPT working on it and you still can't muster an up-day-that is pretty negative.
They keep telling us, everyday that subprime losses are contained and that hedge fund problems are over- but then by the end of the day another mortgage company is going bankrupt and more funds are in trouble.These are the current headlines from Bloomberg. I did not see one positive headline, yet S&P's are up 3 points currently.....?

UBS Falls as Market `Turbulence' Threatens Profit
UBS pre-market trading- 52.68, down 1.41, below its 52 week low

Wal-Mart Posts Profit Below Estimates, Cuts Forecast
WMT pre-market trading- 44.60, down 1.57, below it's 52 week low

Home Depot Net Income Falls 15% on U.S. Housing Slump
HD pre-market-trading- 35.55, up .31, .40 above it's 52 weeek low

Citigroup May Lose $3 Billion on Subprime, LBOs, Bernstein Says
C no pre-market trading

Today's News Releases:
8:30 am June Trade Balance (last-$60 billion), July PPI (last -.2%)
8:55 am Redbook Retail Sales(last +3.2%)

Important earnings: WMT, HD, TJX- see above.

With so much bad news it is had to get positive for a bounce of these current levels but I assume the PPT, FED, GS and other huge institutions will give it all they got! Try clear trades when they are taking them higher and if we break current levels get you short selling hat on!