Options traders increased their bearish positions to a two- month high yesterday, after analysts said Lehman may report its first quarterly loss since going public in 1994. Credit-default swaps on the New York-based firm jumped 19 basis points to 275 today, according to CMA Datavision prices. The contracts rise when investors' perceptions of credit quality decline.
On top of everything else Lehman is buying back it's own shares, the shares everyone hates most. So look for a buy alert on Lehman Brothers.
I was about to say that the market seems to be slow to react to Federal Reserve Chairman Ben S. Bernanke remarks that the FED is done decimating the dollar, but I realize it's better to say they just don't believe him. The FED may want to rally the stock market and crush gold, only to sell into the stock rally they created and buy the gold they scared everyone out of. We have seen this movie in the summer of 2006.
Federal Reserve Chairman Ben S. Bernanke signaled he's done cutting interest rates for now and raised his biggest concerns yet about the inflationary effects of the dollar's 16 percent drop in the past year against the euro.
We intended to short IAU, but for now hold everything.
No comments:
Post a Comment