20081212 PM

Dow 8,629.68 +64.59
Nasdaq 1,540.72 +32.84
SP500 879.73 +6.14. Was down 40 points pre-market.
Bad news had markets down and they recovered during the day.

XIDE 4.66 +.92. Possible by at 4. Targets are 6.48 then 7.53.
DRYS 9.37 +0.51. Off the bottom with lots of room above. Consider to buy.
XLF 12.13 +0.23. Quickly going to 13.82 and then can test 15.


If even part of the $50B Madoff Ponzi scheme is true, then this story is remarkable. Persistent stories about "naked shorts" in the COMEX gold futures seemed unbelievable. After all, there is regulation and oversight (apparently not for Madoff).

I am beginning to believe how COMEX gold could be manipulated by a small number of trusted, powerful, and corrupt participants. If massive naked shorting has happened, then the losses have already occurred and we must only wait for the news of the losses to be reported. Such reports would would rapidly and intensely spike the price of gold. A minute later, traders would question other commodities and significant damage to the trust and credibility of "free market" trading exchanges would occur.