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Strategies & Market Trends : Waiting for the big Kahuna

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To: carranza2 who wrote (81122)9/19/2008 8:35:44 AM
From: Real Man2 Recommendations  Read Replies (5) of 94695
 
It's the ARBS. Whatever bearish funds you have, derivatives
you buy or sell, ARBs are the mechanism that connects them
to the underlying asset. In this case, ETFs use futures to
go short, then ARBS are on the BUY side of those, and on
the SELL side in the cash market, taking a RISK FREE position
of long futures/short cash. They can't do the latter now.
The integrity of the market has been destroyed. ARBS will
go home, and it won't matter how much HANK pumps the futures
anymore, the phone boy gone home. CASH sellers from distressed
credit markets will crash the spoos. They are not short, they
sell because they need cash to pay debts.
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