Replies to post #7193 on Zeev's Turnips Patch-No Politics (ZEEV)

[XBrit]

1) Today's NY Times article makes more serious allegations against C than had previously surfaced. The new evidence points to C having actually stepped over the (thin) line into illegality one one of their Enron hedge deals. Admittedly a small one, only $125M. But just a small spot of blood is enough to bring the shark packs.

2) JPM's fall today was related as much to rumors of derivative problems as it was to the Enron thing. Widespread speculation that desperate shorting by JPM was responsible for driving gold down today, although I don't understand all the logic there. Gold market politics baffle me.

[wstera2]

Zeev,

IMO, one of the reasons we are seeing such extremes is that folks, particularly J6P is still buying every dip. It actually was so bad when you & a couple of other brighter traders called a turn that I actually faded you all & stayed short. The folks on this thread & elsewhere were going long, covering their shorts & starting to go long, etc.

I'll admit I was a very nervous short when I found myself pointed in the opposite direction of you, AllansAlias, & other notable traders. However, it just seemed that every dip was still being bought. After that sudden ramp to NAZ 1426 even more folks were thinking NAZ 1540 - 1700 range.

Luckily, I was right for a change <g>.

FWIW, I did cover my shorts late last Thursday & started going long as the relentless selling seemed to be over done. I traded my longs for a few shekels until yesterday & kept increasing my exposure............

OOF

Now, I'm looking at a lot of red too.

I know the market can continue to go down even in these deeply oversold conditions. I do feel less nervous being pointed in the same direction as you FWIW. Right now I'd gladly take a manufactured short squeeze for a day or three <gg>.

Tim Ö¿Ö