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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (64388)	6/12/2003 11:07:05 AM
From: Terry Whitman	Read Replies (2) \| Respond to of 94695

I thought this was a pretty good explanation- >Bull Market Stages & My Beef Against Contrarian Sentiment:< Message 19025169 Bears will be an endangered species soon. We're about to enter the Overbought region on weekly Relative Strength (RSI). This is where you usually see the steepest gains and a blow off top (or two). The next 4-12 weeks could see some mind numbing gains and sharp whipsaws before we enter the late summer/fall selling season. stockcharts.com[l,a]waclyyay[de][pb7!b25][vc60][iUa12,26,9!Lb14]&pref=G I can see it already. We'll get a sharp pullback, maybe even a test of the 200 day moving avg.,and da bears will all be out screaming about how this is a repeat of 2000 and such. Then we'll go even higher..

To: William H Huebl who wrote (64388)	6/12/2003 6:52:11 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

From Fleck tonight: A Derivatives Dawning: It's interesting to watch government officials scurrying away from Fannie and Freddie. The snowman had comments in New Mexico about how they needed more transparency/regulation. Members of the illustrious Fed board have said the same thing. Congress is, of course, talking about holding investigations, and likewise the SEC and the attorney general. My guess is, something big must be wrong there for everybody to be acting like it's not their problem. The fact that these two behemoths with an unfathomable amount of moving parts could regularly hit their earnings targets and have smooth, steady growth almost assures you that earnings were being managed. Financial institutions have the accounting option of picking between assets held to maturity, or available for sale. When hedging, they can choose between a cash-flow hedge, which affects the balance sheet, or a fair-value hedge, which affects the income statement. Given that they can change their mind if the hedge doesn't track, it seems unlikely to me that Fannie and Freddie did not manage their earnings. Will this turn into a ticking time bomb? It sure could. The fact that the markets had a muted response means nothing. We have seen many, many problems and scandals initially be deemed by the market as company-specific, before turning out to be a big deal. Tick-tock-tick-tock... finance.yahoo.com Fannie and Freddie are the cornerstone of the $120 Trillion notional value credit bubble