Building positions
#1
Posted 30 October 2007 - 01:37 PM
#2
Posted 30 October 2007 - 01:58 PM
#3
Posted 30 October 2007 - 02:08 PM
Outspeaks the Squire, "Give room, I pray,
And hie the terriers in;
The warriors of the fight are they,
And every fight they win".
Ring-Ouzel, England
#4
Posted 30 October 2007 - 02:12 PM
IMO, the short term so so breadth is institutions house cleaning out the under performers before they start their early christmas shopping.
Airedale, IMO a short-term so-so rally is a part of institutions positioning for a bear market. I am one of them.
Denleo
#5
Posted 30 October 2007 - 02:18 PM
#6
Posted 30 October 2007 - 02:23 PM
#7
Posted 30 October 2007 - 02:28 PM
#8
Posted 30 October 2007 - 02:39 PM
#9
Posted 30 October 2007 - 06:11 PM
Despite the decline in the previous week, there was about $14.5B call option purchases, another record. The amount of call options sold is just mind blowing over the past 5 weeks, including the week of the decline...
And that could very well be a big reason for the commercials to be tilted so long on the COT. So many are so excited by that. But what if the one thing that has tilted the ledger in that direction is the brokers hedging the selling of call options by purchasing futures contracts. Short calls....long futures as a hegde to preserve the premium. And I suppose that would be a bearish position that appears bullish i.e., the COT report.
#10
Posted 30 October 2007 - 06:22 PM
And I suppose that would be a bearish position that appears bullish i.e., the COT report.
That's why you need to get your clues from the market itself first, the price, breadth and volume. In any case, you would need an insane amount of cash to move the stocks up at this juncture, I've seen it happen, but it is really worrying because I don't think there is so much liquidity heading this way...