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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Perspective who wrote (267414)11/14/2003 8:43:51 PM
From: mishedlo   of 436258
 
From Heinz/Trosky

for the first time in a while, i bought index puts today...and i'll probably buy more if we get a bounce next week. the VXO ( formerly known as VIX ) recently dropped below 17, Rydex money market funds plummeted ( the money was shifted into bull funds ) , Rydex bear assets at the low end of their 1-year trading range, and equity p/c ratios looking extraordinarily complacent in all their customary moving average permutations.
lastly, the Rydex bond ratio recently reached a fresh high of over 27 - i.e., Rydex bond timer short positions were nearly 28 TIMES larger than long positions.
that's a red alert...as is the fact that the bond market is now rising on ostensibly 'economy bullish' and 'inflationary' data.
since the bond market knows more than the arm-chair inflationistas, i deduce that the global deflationary freight train is gathering steam again. that won't be good for stocks.
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