With the confirmed blowup of the Ospraie Management LP the other day it's clear now that the risk manager is in charge of the books. What does that mean? It means forced liquidation of crowded trades. It means selling grandma's pearls. It means throwing the baby out with the bathwater. It means CAPITULATION could be around the corner.
Hedge funds blowing up is just the catalyst we need to drive us to a CAPITULATORY move in the indicies. It also helps when you've got Bill Gross on cnbc essentially calling the bluff of the Treasury. He says they (PIMCO) are not buying anymore GSE paper until Paulson makes a move. Pretty bold, scary stuff; eh?
Tick, tick, tick..............counting down until CAPITULATION..........let's just hope it's a high volume day that results in a nice hammer candlestick.
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This blog is a collection of my analysis derived from many sources. All opinions are for entertainment and educational purposes only. All investment decisions should be cleared with your own investment advisor.
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