Dear LT,

It is kind of a lopsided cup but it puts 1650 or so in range very soon.

What are your thoughts on the formation?

Best,
CIGA BT

^[1]

Dear BT,

The price is right at $1650.

The time is on or before January 14th 2011 or as Armstrong says, June of 2011.

Regards,
Jim

Jim Sinclair’s Commentary

A question that weights heavily on my mind.

Notes From Underground: NEWSFLASH-we are downgrading FITCH!
By Yra

We couldn’t resist taking this shot at the late-Friday news that Fitch downgraded Spanish debt to AA+ from AAA ^[2], which left us dazed and confused. Why did this ratings agency decide to release this on the Memorial Day weekend when the markets were thin and subject to a very volatile reaction? This decision is not of consequence as S&P downgraded Spanish debt ^[3] in April. Could this ratings release not have waited until Tuesday when the markets were back at full strength and had deeper liquidity? Would Fitch’s reputation have suffered if they had waited another few days to make this inconsequential change?

This action raises more questions about the rating agencies at a time when they are undergoing intense scrutiny. We at NOTES are always trying to find the illogic of markets and this is one of those instances. It leaves one to wonder if some of the “objective” actors in the markets are as objective as the markets want to believe? For the supreme idiocy of this Friday’s action, we are downgrading FITCH, a company so removed from the reality of market action that it does not deserve the respect they have previously been accorded. It is time to reign in the power of the raters!

More… ^[4]