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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (75468)5/18/2007 10:26:41 AM
From: Real Man  Read Replies (1) of 94695
 
There might be a minor selloff after expiration, but this should
be just another dip to buy. To much liquidity in the system,
and a lot of people are bearish (put interest is much higher
than call interest), all for a good reason!

However, as long
as the Fed supplies liquidity, the options dealers will push
the market higher by buying futures and to make all these
puts expire worthless. They are totally in control
of these markets - note that all rallies start in the futures
pits on very poor breadth, so it's not J6P buying.
I agree with GZ - we have blue skies
until mid-July. The rest will depend if the Fed prints then.
So far, they have been very accomodating to dealers. Housing
will likely re-bubble, as long as the Fed keeps printing.

It will all end in a market crash some day, so I don't
want to hold anything but calls, but clear skies so
far.
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