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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (93427)	11/12/2007 3:16:22 PM
From: ChanceIs	Read Replies (2) \| Respond to of 206093

>>>Anyone else think this sell off is little over done?<<< I think it is a tad on the blackened side. There has been much discussion over on Patron's board on whether or not a few hedge funds joined the immortals late last week, and a few others aren't busy keeping the dogs from ripping the flesh off of their ankles. The rationale goes that they all got caught long CDOs and sold in a panic. Then they got margoin calls and had to sell their profitable holdings - that would be the patch. It fits. You have to admit that things got overbought. The sandbox has been burned to a crisp. There have been beaucoup rumors that that was a favorite place for the Yen carry trade to collect 15% while paying 1% to borrow. With the Chinese raising their reserve requirements this AM, it makes sense that the regional interest rates would climb and that the currencies would follow suit, providing the close signal on that end of the trade. By the same token, the Loonie was due to correct and that provided a close signal on the other side. At the end of the day you can put oil in your furnace and be warm, unlike CDOs. I have been here before. It is never fun. I understand you banging the CNQ options for $1K every month via 10 contracts - my favorite number as well. I still think you just left $700 on the table by closing the Nov $80s. Trading them on the swings is great - but you bought them back when you didn't have to.