I've found that regardless of whether the news is good or bad for the markets, it's best to stay informed. That's exactly what I've been doing.

Here's some news from Australia that I couldn't help but share with you.

The National Australia Bank's decision to write off 90 per cent of its US conduit loans will have dramatic repercussions around the world. Wall Street will be deeply shocked when they understand the repercussions of what NAB has done. It is clear global banks have nowhere near provided for their exposures to US housing loans which in the words of John Stewart are experiencing a "meltdown".

This massive writedown at NAB, reported in the Business Spectator, is likely a harbinger of more pain to come for U.S. and European banks. It makes me even more concerned than before that the current bear market will continue at least through the rest of this year. If NAB's estimates are correct, banks face the prospect of having to admit up to 3 times more losses than they have already, and obtain more capital at high prices from skeptical investors.

With news like this, I'm encouraged to continue trading mostly from the short side this summer. Just because the bear market's carrying on doesn't mean the profits stop for my Trader's Advantage subscribers and I. Quite the opposite. In this type of environment we find ourselves thriving.