Well, half way though November, some goods and bads for my prediction so far.  However see if the bottoms of DOW and HSI will be around 8200 and 12800 this week.  I know pound should be weak… but much weaker than I expected… 1.4928 right now… ouch!

Okay, back to the topic I want to talk about, Hedge Funds….  What will you do if you are a Hedge Fund manager, and you know your hedge fund is about to be busted at the end of the year.  Oh well, flip the coin and make the decision…   Some reports said there’ll be over than 35% hedge fund to go busted by the end of this year.  Well, the reports were released earlier when the stock markets were even at a higher level (like when dow was at 9000) you can imagine if the failure rate will be still the same right now at 35%… not a chance.  In order to survive, the only way they can do is to start buying at relatively low level (but can’t be too low, otherwise the market will collapse and they and will be vanished in no time) and keep buying until the whole world believes the market is okay then they will survive.

I think 8200 the bottom for DOW in November will be appropriate as stated in my last post.

I expect a relatively bigger rally coming up

DOW target @ 9700 in early December, HSI target @ 16500