More Fires on Monday?

Wall Street reduced losses on Friday because of the blood transfusion exercise into the financial system. News that central banks worldwide are pumping money into their financial systems to allay investors fears also helped. Bears retreated for a while. Will they pounced back on Monday night in New York and paw prices down again?

No one knows for sure. We are not out of the woods yet. But do not expect gung-ho strength buying. Fund managers may come in to buy some blue chips to bottom fish if they feel that the worse is contained. This will only mean that the index will remain put or incrementally better.

If Nikkei and Hang Seng perform well, Asian markets may move up. Expect situationals to sprint particularly KPS,JAKS and KHSB. Second grade blues may also jump. There will be broad based buying. This is the best scenario we can hope for.

If Asian markets play a ''wait and see'' game, the markets will be range-bound with a bias to lower prices. A weakening of the Asian barometers, Hang Seng, Nikkei and FTSE is indicative that the Dow would falter again tomorrow night. Do watch out for the futures, because they are the percussors.

Pray the market holds tomorrow.

Heartsong