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

To: blitzfund who wrote (75873)	6/27/2007 1:08:02 PM
From: GROUND ZERO™	Read Replies (1) \| Respond to of 94695

I think a 50% correction is out of the question here, I can't see that happen unless something absolutely cataclysmic occurred... GZ™

To: blitzfund who wrote (75873)	6/27/2007 2:15:39 PM
From: Real Man	Respond to of 94695

1) Whatever the Fed says or does is bullish 2) The last coupon pass has been on May, 3. Liquidity is running a bit low now. I think it is incorrect to bet they won't do coupon passes anymore. As soon as they do another series of coupon passes, up will the markets go, and fast. That is bound to happen in mid-July, or even earlier -g- 3) The dollar has been rallying, which means they have room to do another series of coupon passes. It is unwise to think they won't. Until the dollar drops through the 80 support, or maybe even gets into a free fall, the Fed is invincible. Yen has been in a 2-day rally though, and I'm watching that closely. Yen rallies make these markets prone to rapid declines. I would think the BK will not arrive because the Fed is "restrictive" and not supplying enough liquidity. Likely, it will arrive once the oversupply of liquidity by this Fed pushes the dollar off the cliff and the rates to the sky, at the same time while the Fed is printing at a feverish pace. That's MHO anyway, and it could happen soon. Meanwhile, there could be another rally, and the extent of this decline is not likely to be dramatic. So far this decline has a pinned look of draining stocks to prop bonds.