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

To: orkrious who wrote (62188)	5/30/2006 11:59:53 AM
From: orkrious	Read Replies (2) \| Respond to of 110194

Date: Tue May 30 2006 11:17 trotsky (@pm stocks) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved getting ground down by the broader market again after an earlier attempt to decouple. that said, sentiment is now so negative that the downside potential seems quite limited, ceteris paribus. e.g. the Rydex pm fund had another $7m. in outflows last Friday - its cash flow ratio is now a mere $8m. above its 2005 low. this basically means that Rydex traders are no more bullish now than they were in the depths of the '04-'05 cyclical bear in the gold sector. this is highly unusual, to say the least. nevertheless, the markets have a 'liquidity problem'. i've put that into quotes because it's really a margin buying power problem - global liquidity actually got quite a boost recently by the BoJ backtracking on its mop-up operation and injecting funds into the Japanese banking system to avert a rise of the overnight interbank lending rate over 0.10%. they injected over $13 billion yesterday, which is massive. it also conveys that there is growing fear of an impending market meltdown unfortunately. obviously the gold sector won't escape

To: orkrious who wrote (62188)	5/30/2006 12:59:08 PM
From: Jack of All Trades	Read Replies (1) \| Respond to of 110194

OI on those calls are 25K+, and higher on the 12.5s, so maybe someone is liquidating? Seems to me like they are thinking the VIX is headed lower, or someone wants to keep the VIX low to buy back puts?