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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: energyplay who wrote (58691)1/11/2005 1:20:46 AM
From: Taikun  Read Replies (3) of 74559
 
EP,

Roach noticed 'measured' is gone but the market didn't? Roach has deciphere-how long for this to catch on?

I am not sure I like this game of chicken. I am now asking myself if I need to stick around pretty loaded (50% invested) if the Fed surprises us on February 1, 2005. I think we all know what happens if we get a 75bp hike. Hedge funds will be puking up as if they downed a 26er of Jack and went on the 7 flags coaster on a hot summer afternoon.

If I book profits now, hold minor positions, and sideline myself, I am thinking there will be bargains, and I think the analysts will soon start projecting more than 25bp on Feb 1 and when the market gets wind of that (maybe next week) this market could become very weak and volatile quickly.

I think the amount I stand to lose by exiting early likely exceeds the possible gains by staying long but in a selloff it will be ugly. I am not sure the Fed thinks they can be 'measured' anymore.

"Always arrive first to the empty battlefield to await the enemy at your leisure. After the battlefield is occupied and you hurry to it, fighting is more difficult."
-Sun Tzu.

David
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