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Technology Stocks : All About Sun Microsystems

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To: E_K_S who wrote (16432)	5/14/1999 5:49:00 PM
From: Alok Sinha	Read Replies (1) of 64865

I think selling Oct calls is probably a wise thing to do since the last few years,there have been big corrections in Oct. Per my prediction (I can lay claim to being right once) the market did drop on interest rate fears today. But I was also surprised by Sun's strength today- I attribute it to a news item (probably in Street.com ) that said that mgt told analysts that the quarter was very much on track. That is as good as saying we will beat the earnings est (by 1 or 2 cents) and have strong rev growth. Given that this is SUN's strongest quarter, the fact that it will not be back-end loaded eases concerns for analysts. On the market front, I am expecting further drops on Monday and Tuesday till the Fed action news comes out. A short rally may occur if the rates are left unchanged, but a tightening bias may see the Dow below 10,500 and NAS below 2400. Personally, I am not very well hedged if the prediction does come true. But I had written covered calls on my INTC, ASND and SUNW holdings, so the premiums do take the bite of any down move somewhat. Regards Alok

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