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Dear Steve:<br>
<br>
I would not recognize the Coco (except in the cap) but the chart you have
attached looks like a bottoming to me. Keep in mind that I did not look
at Coco ever, but I have seen many other charts before...<br>
<br>
Just a thought for a cap of coco...<br>
<br>
Alex.<br>
<br>
At 07:37 AM 11/2/99 -0800, Steve Karnish wrote: <br>
<font face="arial" size=2><blockquote type=cite cite>List,</font><br>
<br>
<font face="arial" size=2>"Contratrend" (is this really a
word?) trading is always dicey. I'm sooooo happy CocoLoco signaled
an exit of the long position last night. This morning I closed out
the long positions I initiated on 10/26 at 872 and filled a bevy of short
positions on the opening (868). Although I took a big 4 point
"beating", friends and relatives are restraining their
criticism (for the moment) due to the "free fall" this
morning. In this game it's not: "What did you do for me
yesterday?"...it's more like: "What have you done for me
since the opening?" It least the mob will be pleased for a few
hours.</font><br>
<br>
<font face="arial" size=2>Steve Karnish</font><br>
Cedar Creek Trading<br>
http://www.abbracadabra.com/cybercast/<br>
<br>
</blockquote><br>
</html>
</x-html>From ???@??? Tue Nov 02 10:03:34 1999
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From: "Mark Morrison" <mmorrison@xxxxxxxxxx>
To: "'Stig O'" <olausson@xxxxxxxxxx>, <Realtraders@xxxxxxxxxxxx>
Subject: RE: Break out in Bonds
Date: Tue, 2 Nov 1999 11:38:35 -0600
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Stig,
The easiest way to convert interest rates to Bond prices is use a conversion
table made available by the CBOT (call 1-312-435-3500). However, if the
loan rate is variable for the next five years, I think you would want to use
a shorter maturity interest rate futures contract for hedging purposes. You
need to find out what the loan rate is based on, and then use a more
appropriate futures contract.
Also, be sure you put on the hedge correctly. If you are borrowing money at
a variable rate, then higher interest rates will hurt you, so you should
SELL futures for protection (higher rates = lower prices)
Mark Morrison
PMB, Inc.
Chicago, IL
-----Original Message-----
From: owner-realtraders@xxxxxxxxxxxx
[mailto:owner-realtraders@xxxxxxxxxxxx]On Behalf Of Stig O
Sent: Tuesday, November 02, 1999 9:06 AM
To: Realtraders@xxxxxxxxxxxx
Subject: Sv: Break out in Bonds
I just got this question below. Since I am just a dumb technical analyst I
don't know the answer to it.
I know, though, that we have a lot of smart guys on the list. I am also
curious to the answer.
Is there an easy way to convert interest rate to price?
regards
stig
>If I have an investment loan for say $1,000,000 at say 7% variable for the
>next 5 years, how does this relate to the bonds? Could I take an opposite
>long term t-bond contract position, such that if my loan interest rate
>doubled to say 14%, the "profit" in the bond contract would offset the
>"loss" due to increased loan repayments? Is this even possible, i.e. to
>lock in the interest rate on my loan in this way?
>
>
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