Well, I don't imagine for a moment that I need to pass much comment on Gordon's most recent piece of nonsense - doubtless that has been done to death during my absence. The only thing I might note is that despite committing over £8bn to 'education' he can't manage to find a measly £200m to keep open a very real public service - ie local Post Offices. I'm not much given to making quasi - political statements, but the man is a total disaster for the UK economy, still blaming the previous incumbent for his own manifold shortcomings, and presiding over incessant tax increases that are undoubtedly going to grease the wheels of the imminent recession. He can't even run his own party budget, for goodness' sake, never mind that of UK Plc - not that his opposite number would be likely to do any better a job. Both main bunches of liars have admitted recently to having problems with 'cash flow' and some loans that are now due, are seemingly being 'negotiated'. Hah! Good though to see a hike in air travel taxation (only because I'm a bit of an 'eco-warrior', although I accept it will make no odds to the number of flights and hence the environment for all that) but how about investing some of that dosh in better railways? Fat chance, methinks, despite ever - rising fares.

Across the Pond, the long predicted trouble in the housing market is really gathering steam now, with 'sub prime' lenders (ie those who lend to the credit - impaired) "dropping like flies", to quote my brother in law. Plus, Toll Brothers, the USA's biggest luxury house builder, is now trading 45% below its share price of just 18 months ago. And with over 30% of prime office space vacant across much of the USA and huge rental discounts being offered, I believe we 'ain't seen nuthin' yet' - the fall is by no means confined to the housing market and will certainly result in recession - 'denial' however is still the name of the game on both sides of the Atlantic, but IW is content enough that things are panning out pretty much as predicted, albeit over a longer than expected timescale.

Anyway, here I am, back at the ski slopes - only problem is, nae snow! It's very late in arriving this season - there was a wee dusting last night to make things look pretty this morning but it has now melted - but just as with waiting for a trade to develop, patience is needed and it will arrive when it arrives.

As to the markets, nothing really has changed at all in the last couple of weeks, and the build - up to the 'big drop' continues - probably the 'Christmas effect' will keep things supported into the New Year now and it wouldn't surprise me at all, to see the FTSE 100 make a fresh attempt to hit its 16th November high before this year is out.

Many thanks to my more 'regular' correspondents for having held on to your questions till yesterday - that is much appreciated while I'm away for more than just a day or two.

Moving on to today's charts, I'm only going to examine one stock - not because of laziness (honest!) but because a few very recent subscribers have requested some more detail on how to choose a suitable DMA. The charts below of Minerva (last featured in WICS of 1st October 06) might help you see what I mean when I say "Choose the shortest DMA that fits the price action, and that also suits your own attitude to handing back more paper profit, or less paper profit." Hopefully you'll see better what I mean when you examine the charts.

That's plenty for this weekend - hopefully I'll be watching the snow falling while I'm next writing to you! I'll talk to you again next weekend, and currently I also intend to produce WICS on Christmas Eve, sad person that I am. (No visitors this year till New Year, sadly - but I guess even in - laws need accommodating! And of course there's a very real trading - related message in that remark - I'm an 'in-law' too! Every situation has its mirror image and we need to be aware of that.) I'll let you know next weekend if there's any change of plan.

Until then, happy trading, and enjoy your Christmas shopping! (Aarghh.)

Ian.

'IMPORTANT NOTICE: These WICS charts are for EDUCATIONAL PURPOSES ONLY. They represent only MY understanding of what is happening in the market for any particular share, stock, commodity or index. In NO circumstances should they be construed as recommendations to trade. If I choose to trade what I see, that is MY decision. YOU must, in turn, come to YOUR OWN conclusions about what action, if any, YOU might choose to take'.