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

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To: bart13 who wrote (87020)9/28/2007 5:08:12 PM
From: russwinter  Read Replies (6) of 110194
 
Good illustrations as they point out what I was looking at too . Probably the one that got me was seeing the big swoon in liquidity going into the correction in March-April, 2006. I was really pointing that out at the time, and caught the correction very nicely. That's when I got out of big winning trades in gold, energy. And everything swooned together. Then magically and even without much effort they some how reflated and got a "recovery" (of even more idiotic lending and Ponzi creation). I remember catching the bottom of the correction almost perfectly, and playing an A-B-C 62% fib retracement to reload for another leg down, thinking I was in terrific shape. They then pushed right on through to new highs on a big move and bear trapped me.

Of course that has led to even more distortions and bombed out Ponzi units. Accordingly the big question is can they pull another rabbit out? The market sure believes so, and lopsidedly so, but look at how bad the negative blowback is already. The set-up is much worse than the spring of 2006, but who knows, and very surreal given all the underlying wreckage to Ponzi finance.
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