Brian, As I wrote earlier, I will post the source of information when I can locate it. It was a credible source, and you are right that it's speculation that the Fed was involved, however the 5000 long contract purchase was not. This purchase was noted by other traders, and the market turned on a dime. Given the amount of margin necessary to purchase these contracts, it was someone with deep pockets and either a lot of luck, a lot of testosterone, or some underlying motivation. Since, the Federal Reserve does not allow it's books open review, this could be done without public knowledge. Also, the Federal Reserve is not part of the government.
It's anybody's guess as to how long the current market mania will last. I suspect that a rise in the Japanese interest rate will be an early warning sign.
Terry, |
