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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 (74868)	3/12/2007 11:29:23 AM
From: Real Man	Read Replies (2) \| Respond to of 94695

Well, we are facing huge mortgage-related derivative blow-up. Stocks don't care, cause there is constant bid from one futures account. These people think it's their mandate to prevent crashes and set prices for stocks. They eliminate any natural support this market used to have in the process. They eased the margin requirements for CME members on Friday prior to last week (surprise!), so, as expected, they resumed selling volativity, VIX declined, and stocks rallied -g- That said, I would not own any asset at this point. Derivative explosion in the last 5 years was caused by the bubbling housing. Now it looks housing is headed for a major trouble, one which no derivatives can prevent. In fact, that house of cards is about to fall. Things appear to be getting really bad in the mortgage-related bond land, and that's a few trillion dollars the Fed can't spare without causing hyperinflation and a major dollar drop.