26 March 2007


Off to a late start this morning...so straight to the action...Overnights kind of quiet with Asian and European markets pretty flat...bonds under a bit of pressure with gold higher by $4 and oil pushing the $63 handle...the story is geopolitical with the Iranians still holding 15 British seaman and you're getting a "Gulf of Tonkin" type feel here...where it doesn't quite matter what's really happening or more to the point how it started...it just matters that the first domino has been knocked over...and who knows where it leads...we are going to stay on the sell side today and just pick a spot just to sell them...any spikes into 1822-1824 are to be sold...keep a bit of a wider stop as I'm just feeling 1800 and lower are in the cards...new home sales numbers up at 10 a.m. so we'll wait until after that number before we take action... pretty simple directional call today...watch breadth for confirmation as it should deteriorate off the bell and let's see what happens when we hit the recent lows in the 1812-1814 area...jfg.

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