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IDS World Markets Wed 28th November 07


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"Spiders - December S&P E-mini Futures: I still think I?ll have a chance to buy the e-minis at 1396, probably tomorrow or Friday. Today resistance above the market is at 1443. There are very bullish divergences showing up in the 5 and 10 day moving averages of advancing issues and I think this means that a long lasting low is imminent."

 

http://carlfutia.blogspot.com/

 

He might have to wait a bit. Looks like we are off to the races. :lol:

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Let the runs begin! Good article to read:

http://www.bloomberg.com/apps/news?pid=206...J6Tk&refer=home

 

 

Florida School Fund Rocked by $8 Billion Pullout Amid Defaults

Nov. 28 (Bloomberg) -- Florida local governments and school districts pulled $8 billion out of a state-run investment pool, or 30 percent of its assets, after learning that the money- market fund contained more than $700 million of defaulted debt.

The State Board of Administration manages about $42 billion of short-term investments, including the pool, as well as the state's $137 billion pension fund. Almost 6 percent, or $2.4 billion, of its short-term investments consist of asset-backed commercial paper that has defaulted. Those holdings include $425 million in Axon Financial, a structured investment vehicle, or SIV, according to state records.

About $19 billion remained in the pool this week after the unprecedented wave of withdrawals, which came after the State Board of Administration reported its holdings of downgraded debt to Crist at a Nov. 14 public meeting of his cabinet in Tallahassee.

``Knowing other people were pulling out, and that word was spreading, we looked at the potential for a run on the pool,'' said Orange County's Moye.

Coffee predicts the pool will likely file lawsuits to recover losses. ``I'd expect the pool is going to sue the people who sold them the commercial paper, saying the risks were hidden,'' he said.

Lehman Brothers Holdings Inc. sold Florida most of its now-default-rated asset-backed commercial paper.

The Florida pool, which was the largest of its kind in the U.S. at $27 billion before the recent spate of withdrawals, has invested $2 billion in SIVs and other subprime-tainted debt, state records show. Connecticut, Maine, Montana and King County, Washington, are among other governments holding similar investments, in smaller quantities.

Neither the newsletter nor Stipanovich's testimony disclosed that the pool owns $650 million of certificates of deposit from Countrywide Bank FSB, a unit of Countrywide Financial Corp., that now amounts to more than 3 percent of the pool's assets. The bank's rating was cut to Baa1, three levels above junk, by Moody's on Aug. 16.

``The first people in the withdrawal line get 100 percent of their money,'' he said. ``The loss is suffered by the people behind them in line. Since nobody wants to be at the end, you get a run on the pool.''

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Number two of three:

 

 

 

Deal Date: Wednesday, November 28, 2007

Delivery Date: Wednesday, November 28, 2007

Maturity Date: Wednesday, December 05, 2007

Type of Operation1: Repo

Settlement: Same Day

Term of Operation2: 7 Days

Operation Close Time: 09:40 AM

 

 

 

Results Amount ($B) Rate (%)

Collateral Type Submitted Accepted Stop-Out3 Weighted

Average4 High Low

Treasury 4.650

2.442

3.50

 

3.608

 

3.68

 

2.75

 

 

Agency 9.350

3.240

4.52

 

4.552

 

4.58

 

4.25

 

 

Mortgage-Backed 21.750

7.318

4.65

 

4.677

 

4.73

 

4.50

 

 

Total 35.750

13.000

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Monday I was lamenting that I had closed out all but one of the shorts that had been on the WSE Pro ETF chart pick list over the previous few days. Short coverer's remorse. :lol:

 

But I was being disciplined, obeying trailing stops and price targets, and indicator patterns. Once again, there's no substitute for just following the basic principals of TA. That resulted in closing all the shorts reasonably near the low of the move. No remorse necessary. :)

 

The one short still on the list is one of those "short 'em to zero" things that I want to give wide latitude. Have a pretty good cushion on it, so we'll see how that goes for now.

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DJ Fed Accepts $5 Bln In Overnight RPs

 

Type of transaction: Overnight RPs

Total accepted: $5 Bln

Total submitted: $18.3 Bln

 

Agency Collateral Operation

Total accepted: $2.5 Bln

Total submitted: $8.85 Bln

Stop-Out Rate: 4.61%

Weighted Average: 4.63%

High-rate submitted: 4.65%

Low-rate submitted: 4.4%

 

Treasury Collateral Operation

Total accepted: $2.5 Bln

Total submitted: $7.75 Bln

Stop-Out Rate: 3.7%

Weighted Average: 3.75%

High-rate submitted: 3.82%

Low-rate submitted: 3%

 

Mortgage-Backed Collateral Operations

Total accepted: None

Total submitted: $1.7 Bln

Stop-Out Rate: N/A

Weighted Average: N/A

High-rate submitted: 4.59%

Low-rate submitted: 4.45%

 

(Data was provided by the New York Federal Reserve Bank).

 

 

 

 

DJ Fed Accepts $13 Bln In 7-Day RPs

 

Type of transaction: 7-Day RPs

Total accepted: $13 Bln

Total submitted: $35.75 Bln

 

Agency Collateral Operation

Total accepted: $3.24 Bln

Total submitted: $9.35 Bln

Stop-Out Rate: 4.52%

Weighted Average: 4.55%

High-rate submitted: 4.58%

Low-rate submitted: 4.25%

 

Treasury Collateral Operation

Total accepted: $2.442 Bln

Total submitted: $4.65 Bln

Stop-Out Rate: 3.5%

Weighted Average: 3.61%

High-rate submitted: 3.68%

Low-rate submitted: 2.75%

 

Mortgage-Backed Collateral Operations

Total accepted: $7.318 Bln

Total submitted: $21.75 Bln

Stop-Out Rate: 4.65%

Weighted Average: 4.68%

High-rate submitted: 4.73%

Low-rate submitted: 4.5%

 

(Data was provided by the New York Federal Reserve Bank).

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