You've Got Mail. From the SEC

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Freddie Mac fell 26 percent yesterday to $5.26 in New York Stock Exchange composite trading. Fannie Mae tumbled 27 percent. Lehman rose 82 cents, or 6.6 percent, to $13.22, ending a four- day slide. ``Small public companies have been complaining for years about the abuses of naked and illegal short selling,'' said Roel Campos, a former SEC commissioner now at Cooley Godward Kronish in Washington, in an e-mailed response to questions. ``The new attention by regulators has occurred when those naked-short chickens came home to roost with Bear Stearns and now Lehman.'' Historically, ``it has been difficult to parse where rumors start and where they are being spread,'' Cox said. Now, technology is ``permitting us to trace back through e-mails and instant messages to the very individuals who have manufactured intentionally false information,'' he said.

As mentioned yesterday, given current uncertainties, not many recent buyers might be willing to let go of their gold positions. Some of the declining open interest in oil may in fact have shifted into gold and this could provide support near current levels. Stabs to higher levels could remain in the cards while the turmoil sorts itself out. At least as regards today's news, the inflation-protective attributes of gold could come into play among disoriented investors. However, a de-couple from oil has not been visible just yet, thus we must keep on alert for developments in that market. Look for supply data and/or more evidence of demand destruction and how they play out for black gold.

Happy Trading.