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Tuesday, September 21, 2010

mirage bubble rally of QE2 hope. crashes, once the hope breaks.


a bubble rally based on hope of QE2.
should give back even much faster once people find out the king wears no clothes, and possibly off king the throne.
we can create an algorithmic stampede of long-selling.
in the coming days, the long-selling stampede could be 30 times larger scale than yesterday's stampede of short-covering because much more longs of institutions than shorts, and casuing the great crash of the decade.

hey, what do you think about the QE2 hope? let's make fun of this topic by saying your fantasy idea. :)

PS. 1). Jay Lin asked: "Why are Oct 1st and 4th so important as crash window?"
i did a statistic for crash window. all major crashes occurred, centered at 10th day after the recovery high. window is 10th +-2. 1987 great crash is 11th, 2010 flash crash is 9th, many more. if yesterday 9/20 is the top, 10th is fri 10/1, if today is the top, 10th is mon 10/4. i already "knew" the top will be around these days when issued Crash warning on 9/4. there also are cycles study about it.

2). where is the QE2? do you see it? if only cheap talks can do w/o actually doing it, that would be fantasy!
http://www.federalreserve.gov/newsevents/press/monetary/20100921a.htm