Email – #418

Our QQQQ spread is trading at around break even. Cover this position by selling your OZC MQ position and buying back your OZC MM position .

The events of the last few days have confirmed my view that the Federal Reserve will not allow the “system” to fail. The markets are oversold and while we may have continued volatility, the market picture has turned for the better, especially for the later part of the year.

I have written often about the effects of liquidity in the system and how there is a lag effect from interest rate cuts. We have yet to see that effect in the fundamental picture of the economy. But, before we can get there, we have to restore confidence in the markets. That confidence received a strong boost this past weekend with the mega bailout of the financial system. We are well positioned to take advantage of a further rally in the market. Cover your Spread on the QQQQs.

Karim