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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 (68730)	2/21/2004 10:10:16 AM
From: Real Man	Read Replies (2) \| Respond to of 94695

Bears are really fighting the banks, the derivative market, although it is quite obvious that Greenspan is very supportive of OTC derivatives, a 150 Trillion notional value market. It is totally unregulated, which makes it criminal akin to Enron. A collapse of that market will ensure the downfall of everything else - Enron-like charts for the banks. Extreme leverage ensures the continuation of the bubble, but we all know the other side of it. I think this market is trying to make a top here. If it does, especially if bonds make a top, we could see a very violent move down through the lows. With Yen back down, if it stays down due to longs exiting Yen positions, BOJ purchases of treasuries will go away. Will the speculators still pile up on "considerable period", buying long treasuries, and shorting short treasuries with extremely high leverage, or will they get flushed out? I don't know. But even with the bogus adjusted with hedonics CPI report, it showed 6% annual inflation. So, all treasuries now officially had a month of negative yields. Someone MUST be holding them, w/o using leverage. I bet that someone does not like this one bit.