NYSEAM:LSG - Post by User
Comment by
basemetalon Jan 16, 2012 12:14pm
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Post# 19407922
RE: RE: basemetal
RE: RE: basemetal Possibly the answer to our quandary is "hedging". Banks and certain other institutions are not interested is "spike profits" of directional speculation, preferring steady profits from such revenue sources as commissions and hedging.
There are many different forms of hedging. ... (explaining how hedgers can appear to take both sides of the market.) The form that IMHO appears to fit the present LSG situation is suggested in the following sentences taken form "All About Hedge Funds" (Jaeger).
"The (hedge fund) manger is looking for situations in which prices have gotten out of line, but are expected to go back in line within days, not weeks nor months. ...." (.....and much more )