The $10B put options difference this week is hedging against a possible of one trillion dollar change in the equity values for the next few weeks to a couple of months. This is excluding the short selling in the markets which is probably beyond all time high at the moment, did you see the odd lots lately?!?
I think more downside is coming in the months ahead for the price lows since the internal low must be about here, however the indices should bounce.
I expect the Fed to acknowledge that something is seriously wrong, enough for a rally, then the market can decline the first time they cut the rates since it will be fully priced in. I wonder what the dollar will do...
- kisa
Edited by kisacik, 04 August 2007 - 04:57 PM.