Happy New Year!

Happy New Year to my fellow traders!

I hope this year is more profitable for us all. May your money grow exponentially.

The yen products took a nose dive around 7AM EST today as Dow Jones futures were pointing south with more financial crisis weighing on the markets. As New York traders began making their way in to work around this time, they apparently saw danger going into the stock market opening bell at 9:30AM EST. This forecast proved to be correct as the Dow closed down 277 points. All of the yen pairs sold off hard during the New York session.

The biggest story was Citigroup posting a loss of $18 billion after writing down the value of subprime mortgage investments. This is the greatest loss in the bank's 196 year history. Once again this is just a continuation of the subprime nightmare that many analysts have said is just the tip of the iceberg. You can expect things to get worse over the next couple of years until equilibrium is re-established between price, supply, and demand.


In one of my previous posts sometime last year, I predicted that a continuation of the Dow's fall could be expected around early February. This move came a little early, but nonetheless, I think this is what we were looking for. Right now it sits at a critical support as it dangles just outside of the Andrew's Pitchfork trending channel.


It doesn't look healthy enough to re-enter this trend channel especially with more lurking bad news from the financial sector. Looking at the weekly chart, the next stop looks to be around 12,000.

In my searching for statistical data on the Dow of how poorly it has performed for the year, I came across a site that might be of some use, the Dow Jones Indexes. I haven't had a chance to review it closely, but I thought I'd pass it on to my readers. I can't help it... I love to share information!

Much success to you and yours.