If your shocked we are selling off, then you have been looking at the wrong information,
reading jibberish, and believing Keynes Economics.

Google, ABX Index for the 900th Time my fellow stockpickrs!

Its bad!

the stimulus package is a joke. i heard $300 will help ya pay a 30 yr mortgage at 15%. its
*awesome*

What is a stimulus package going to do! Lol 200 Billion? Credit Markets are what, a
couple, trillion lol.

http://www.markit.com/information/products/category/indices/abx.html


Lol. Talking to myself and Ryan. I don't understand dude LOL.

have to have part of your portfolio dedicated to shorting in this market. 1409 is the new
level im marking as ground zero, just like 1520 and 1490 before it, it is HUGE. I wouldn't
short into it, but if we break it i'd advise anyone to sell half or all of their longs and
add to short positions.

Last edited on: 11-21-2007 03:55 pm

Exactly, but that could be at the expense of bond insurers. Which are painting an ugly
picture. When the boom was hot nobody cared about 100 to 1 leverage, now they are,
worried. I'm bamboozled! These Bond insurers do not have the capital. Holders of this
junk will likely have to drink the Wild Turkey, but in a form of a shot. Rating agencies
are scared to cause a panic, which, I am assuming. But it seems logical from a leverage
credit crisis standpoint. And then you couple all of this crap which is dependent on real
estate you get easy shorts!

Those indices have been doing a header. Knowing nothing about volume from these charts, I
would take us to be in the second leg down.

I see nothing suggesting a bottom here.

My longstanding observation is that bear markets in a number of products tend to have 3
legs down. These are generalizations, but the second leg has the greatest magnitude; it's
where the real money is made. The third leg is smaller, but psychologically it's where the
real fear is. The last strong holders have to capitulate. There can be no belief left
anywhere in the world that the security can every regain value.

That's why the banks' current strategy of 'hold & hope' is quite telling. They have to
puke this paper before it can work again.

Observe the August selloff in comparison to November. Your questions are answered by a
chart alone.

http://www.markit.com/information/products/abx.html

You guys have to keep your eye on this crap. I'm not kidding.

I love it. Did they bailout? Good debate about it. Not sure yet.

Last edited on: 08-25-2007 08:04 pm