As expected…the flags have broken out...

the ZigZag bounces are done...The EURO has broken its flag down…and look out below and the Dollar has broken its flag to the upside…and look out above…this will be VERY BIG and the S&P500 is doing so now and BTW EMD (S&P Midcaps 400 Futures) is leading the way down and is continuing its recent trend toward significantly weaker trading than S&P…targets for these flags are below1.28 perhaps even to parity on the EURO, Dollar in the upper 80's to anywhere in the 90’s and the S&P500 below 1000…it will all happen faster than most are thinking possible…there will be bounces of course, but people will rest all their hopes on them and not remember them for very long…

Anyone looking for the Buy the Bounce…and BTFD to come and save the day…this is different game and they will most likely be sorely dissapointed…Short-term cash is gone…and there is a run on the banking system - forget any single bank…its the whole system people are running from…what’s more the margin call that accompanies the run is contagious and will spread anywhere it can go.

And the are off and ON THEIR OWN…no handouts coming from Russia or china or the US in time to save this stinking pile from its true nature...

For a little reference, a key played in the deriatives and REPO market can keep up this charade going any longer...LCH Clearnet is:

LCH.Clearnet (previously known as the London Clearing House and the Paris based Clearnet) is a British independent clearing house, serving major international exchanges and platforms, as well as a range of OTC markets. LCH.Clearnet clears approximately 50% of the $348 trillion global interest rate swap market, and is the second largest clearer of bonds and repos in the world, providing services across 13 government markets. In addition, LCH.Clearnet clears a broad range of asset classes including: commodities, securities, exchange traded derivatives, CDS, energy and freight. As a clearing house, LCH.Clearnet sits in the middle of a trade, assuming the counterparty risk involved when two parties (or members) trade. When the trade is registered with LCH.Clearnet, it becomes the legal counterparty to the trade, ensuring the financial performance; if one of the parties fails, LCH.Clearnet steps in. By assuming the counterparty risk, LCH.Clearnet underpins many important financial markets, facilitating trading and increasing confidence within the market. Initial and margin (or collateral) is collected from LCH.Clearnet members; should they fail, this margin is used to fulfil their obligations. The amount of margin is decided by LCH.Clearnet’s risk management teams, who assess a member’s positions and market risk on a daily basis. LCH.Clearnet Group is regulated as a Compagnie financière by the Autorité de Contrôle Prudentiel (France) and as a Recognised Clearing House by the FSA. LCH.Clearnet is 83% owned by its users and 17% by the exchanges that it serves.