Homebuilders, DSL, IWM and other popular bear havens. It looks like the bears are giving up....again.
In the mean time, XAU is still very weak and rates continue to rise. Anyone look at the buyout of MGM? If you run the numbers the cash flow of MGM will not even come close to covering the total debt load once the buyout is completed. Something in the private equity world doesn't add up. It won't matter til it matters, though. All the time these deals are made supply of equity is being removed maintaining the bullish balance of available liquidity to supply of stocks. This is why indicators such as Jason's mutual fund cash level and more importantly mutual fund cash level adjusted for ST interest rates are pegged right at all-time records back to 1954 or so. Mutual funds simply aren't that important anymore as it seems funds are now fully invested ETFs. The marginal dollar seems to come from private equity/hedge funds/'new' institutions (GS, MWD, UBS, etc).
Lots of Short Covering
Started by
Cirrus
, May 22 2007 02:20 PM
3 replies to this topic
#2
thespookyone
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Posted 22 May 2007 - 03:36 PM
Homebuilders, DSL, IWM and other popular bear havens. It looks like the bears are giving up....again.
In the mean time, XAU is still very weak and rates continue to rise. Anyone look at the buyout of MGM? If you run the numbers the cash flow of MGM will not even come close to covering the total debt load once the buyout is completed. Something in the private equity world doesn't add up. It won't matter til it matters, though. All the time these deals are made supply of equity is being removed maintaining the bullish balance of available liquidity to supply of stocks. This is why indicators such as Jason's mutual fund cash level and more importantly mutual fund cash level adjusted for ST interest rates are pegged right at all-time records back to 1954 or so. Mutual funds simply aren't that important anymore as it seems funds are now fully invested ETFs. The marginal dollar seems to come from private equity/hedge funds/'new' institutions (GS, MWD, UBS, etc).
The same buyer took a nice hit on a large GM investment as well, eh?
#3
JAP
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Posted 22 May 2007 - 03:53 PM
Homebuilders, DSL, IWM and other popular bear havens. It looks like the bears are giving up....again.
In the mean time, XAU is still very weak and rates continue to rise. Anyone look at the buyout of MGM? If you run the numbers the cash flow of MGM will not even come close to covering the total debt load once the buyout is completed. Something in the private equity world doesn't add up. It won't matter til it matters, though. All the time these deals are made supply of equity is being removed maintaining the bullish balance of available liquidity to supply of stocks. This is why indicators such as Jason's mutual fund cash level and more importantly mutual fund cash level adjusted for ST interest rates are pegged right at all-time records back to 1954 or so. Mutual funds simply aren't that important anymore as it seems funds are now fully invested ETFs. The marginal dollar seems to come from private equity/hedge funds/'new' institutions (GS, MWD, UBS, etc).
Are you suggesting that the builders have hit a bottom?
#4
Cirrus
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- TT Patron+
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Posted 22 May 2007 - 10:30 PM
Homebuilders, DSL, IWM and other popular bear havens. It looks like the bears are giving up....again.
In the mean time, XAU is still very weak and rates continue to rise. Anyone look at the buyout of MGM? If you run the numbers the cash flow of MGM will not even come close to covering the total debt load once the buyout is completed. Something in the private equity world doesn't add up. It won't matter til it matters, though. All the time these deals are made supply of equity is being removed maintaining the bullish balance of available liquidity to supply of stocks. This is why indicators such as Jason's mutual fund cash level and more importantly mutual fund cash level adjusted for ST interest rates are pegged right at all-time records back to 1954 or so. Mutual funds simply aren't that important anymore as it seems funds are now fully invested ETFs. The marginal dollar seems to come from private equity/hedge funds/'new' institutions (GS, MWD, UBS, etc).
Are you suggesting that the builders have hit a bottom?
Not unless a cup of coffee is $20 next year.
