Thursday, February 28, 2013

Treasury Breakout…on highest volume since 2004

Lets be realistic, not only are central bank balance sheets in utter disarray but banks in general are in greater disarray than ever before. Price manipulation takes on many forms, if you happen to be one of the rare market participants that is able push around a price in one market to offset losses in another…then there is little chance you will not do it. However, just because you can do that does not change the nature of the margin call. Attempting to create gains in one asset to grant you equity to hold another is still a margin call in my book. And margin calls, usually end up with losses - FOR EVERYONE. Bad trade management and complacency are the death nail of any one holding or trading assets. What this treasury chart says, is that though the market seems complacent…someone knows that something is about to rip heads off. When central banks sell because they will be forced to disclose losses as they get too large to obfuscate - its not going to be a pretty thing…hence the very very real possibility that risk markets could end up in a total freefall…each central bank and institution trying to jump in front of the other to preempt greater losses and unwind their assorted manipulations.
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