The ‘depth’ of global decline . . . still unraveling; is obscured by this very rally that, as ingerletter.com members know, we’ve allowed for since ceasing all equity shorts, or Index Puts (or related bearish behavior), and commencing some light nibbling; all the way back in November, before Thanksgiving. Now the question revolves around the extend of this move, as the rally of hope, which we indicated last week isn’t really a strategy; unless kept on a short-leash from essentially a trading basis. Over this weekend we anticipate commencement of ground-war aspects (balance reserved).

 Dow Jones Industrial Average chart:

(chart courtesy Quote.com)

MarketCast (intraday analysis & embedded Daily Briefing audio-video). . . remarks forecast substantive failures by banks or other areas; following breakdown action, as we've outlined. Remember; back in early 2007 we denied the 'liquidity' momentum as a canard; believing housing only the first of the asset bubbles to deflate. We outlined structured investment vehicle failures; banking issues, confluence of asset deflations, and more; continuing with interruptions per projecting long ago: 'a perfect storm'.

As the debt bubbles continue to deflate, alternating tradable moves continue from a trading perspective. Against that backdrop retaining a macro (adjusted) Sept. S&P 1600 +/- short irrespective of interim oscillations. Technical analysis via video follows.

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