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hardnox604008
Advisor

Liquity giveth, it can taketh away

Signs of stress showing in short term credit markets.

 

$100 crude and commodity pricing in general has floated up on excess liquidity. With plenty of spec length in most everything all markets are vulnerable to panic selling if liquidity freezes up.

 

Stay tuned.

 

 

http://www.zerohedge.com/article/ice-9-sightings-blank-ois-spreads-confirm-liquidity-freeze-speading

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11 Replies
hardnox604008
Advisor

Re: Liquity giveth, it can taketh away

Make that liquidity

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NCcorntrader
Senior Contributor

Re: Liquity giveth, it can taketh away

when one large fund decides it isnt going to roll over its current position, that contract will get hammered. we may be seeing it right now in corn. *disclaimer- no data here, complete speculation on my part

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k-289
Senior Advisor

Re: Liquity giveth, it can taketh away

 Is  interesting to see how food is played with like a chest game----

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GoredHusker
Senior Contributor

Re: Liquity giveth, it can taketh away

Food isn't.  Raw products are.  As long as banks are given the luxury of borrowing from the Fed window at zero and using the money as they please, we will see more of the same.  As long as index funds are given the luxury of no position limits, we will see more of the same.  As long as interest rates stay near zero, we will see more of the same. 

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k-289
Senior Advisor

Re: Liquity giveth, it can taketh away

 Corn  --beans---wheat--- still  equal  meat - milk -- eggs--bread--pasta--  

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GoredHusker
Senior Contributor

Re: Liquity giveth, it can taketh away

The raw products being corn, beans, and wheat are fed to animals that eventually equates to meat, milk, eggs, bread, and pasta.  I have yet to see any futures markets that trade meat, eggs, bread, and pasta.  If you want to trade those commodities, I believe you'll have better luck trading the stock market for public companies that process these products. 

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k-289
Senior Advisor

Re: Liquity giveth, it can taketh away

  OK why do we trade fuel on the board----we don't eat it although it is the biggest driver in food inflation ?

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GoredHusker
Senior Contributor

Re: Liquity giveth, it can taketh away

You answered your own question.  There are three components necessary for our existence:  food, water, and air.  We don't trade water and air either.  This country along with many others were growing long before the combustion engine and fuel was even necessary.  Without fuel, life would become a lot more difficult.  However, humans lived centuries without it.

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Artifice
Senior Contributor

Re: Liquity giveth, it can taketh away

wrong--GCbugs, doom gloomers miss it all.  we ar in an age were INDEX legnth helps build excesses and

ten bull bubbles pop.  3000 DOW point ago yiouy wer bearish stocks,, ever own one?

 

Corp profits recover to pre crsis and boom.stk recover .

 

SRW has been in deline for 6 mo, NG for 3 yrs, why liquidityt ?

NO there is TOOOOOOOOOOOO   much.

 

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