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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (44578)11/1/2005 12:42:00 PM
From: Mr.Creosote  Read Replies (2) of 110194
 
What do you think of the action exhibited by the commercials in stock index futures and also in the US dollar?

BTW, commercials have an extreme long position in stocks while they are extremely short the US dollar. I am trying to make sense out of this as they are usually (but not always) right. If they turn out to be right again it would imply that a big drop in the dollar going forward would elevate the stock market to new highs. The Bernanke appointment might have sealed this outcome in their minds.

As for me I am still on the outside looking for a good spot to enter. At this moment I am worried about the commercials and I am uncomfortable fading them. In addition Newman at crosscurrents is saying that 70%+ of trading volume today is done by programs and therefore the market cannot be priced fairly. This is indeed a dangerous market.
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