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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (3237)	12/11/2003 7:40:45 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

They have priced in a rate hike every quarter from now until then. Totally absurd. i agree. i should set up one of those accounts! instead i have just been buying and selling bonds... Well you and I are in complete agreement but Russ seems to be in agreement with you but not me. Not sure what to make of that anomoly. Yes you should get an account setup. I recommend Dave Megar at Alaron Give him a call 800-935-6484 Tell him Mike Shedlock Sent you BTW he is there head metals trader as well and a pretty good one As for insanity, look at this free cash Even with todays eurodollar rally you can get $575 for shorting the Sept 2005 Eurodollar 95.50 PUT Do 10 of those (I do not have the margin) and pocket $5,750 FREE MONEY To collect, all you need are interest rates ANYWHERE LESS than approximately 4.25. Now are interest rates headed to higher than 4.25 in the next 550 days? I sure as hell doubt it. You probaly do not even have to wait 550 days to get most of it. If they do not raise for the next 6 months (very likely) these puts will probably drop by 60% and you can collect the profit and roll out another 6 months from there. If somewhere along the line we get a couple of hikes that will be the end of it IMO and that 4.25 is still absolutely safe IMO. At that time load up the boat with futures cause we should be crashing shortly after two hikes. All these people calling for hikes are sure gonna be surprised if the next move is actually a rate CUT. I think the next move will be a hike, but I have a 20% liklihood of another cut first. At any rate, we are not headed to 3% rates anytime soon IMO. M