Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Trumptown who wrote (66407)	10/3/2003 10:51:41 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

We already broke all records of 1999 in this mania. I'll be buying 2006 72 DIA puts today. BWDIK?

To: Trumptown who wrote (66407)	10/3/2003 11:00:11 AM
From: Real Man	Respond to of 94695

The bond tankage has commenced. Stocks are not important. If interest rates rise, as I believe they will, the credit derivatives market will experience great lack of liquidity. If liquidity crunch hits the bond market, expect DOW-2000, in a rush. There will be no exit. Since bonds open at 8:30, stocks at 9:30, stocks may just open there one day -g-. The derivative collapse will likely take minutes if not seconds, triggered by computer systems. That's how derivatives markets work. These are markets for professionals, who have supercomputers generating signals for them, resulting in execution of these signals within a fraction of a second. When they are all on one side of the boat, and the supercomputer says "sell",... that's what a liquidity crunch is. The credit market has to get there first, though. I'm watching dollar and bonds to get the clue. Stock buyers have no clue, because such things have not happened before in this country. I've seen derivative driven collapse in Russia, though - when the Ruble opened 80% lower one day than the day before...