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To: KM who wrote (66397)	10/5/1999 11:58:00 AM
From: pater tenebrarum	of 86076

Truff, while i agree that there is money on the sidelines, there are precedents for money on the sidelines being unable to keep the market from declining. one example would be the 1929 crash...the investment trusts were flush with cash at the time. after the bankers intervened in the market after the initial break and managed to rescue it from the abyss, there were two trading days during which volatility declined sharply, and trading volume was immense...in those two days, the trusts bought heavily and it was believed the decline was over. the rest is history... another example is the Japanese bear market of the nineties...no other bear market was accompanied by such a mountain of money on the sidelines i believe. meanwhile, a look at the Rydex ratio indicates that quite a bit of money has already reversed it's positioning, at the drop of a hat: decisionpoint.com all this is not to say that the market can't continue higher for a while, fueled by delta hedging, short covering and more of the sidelined money jumping back in. i only wanted to point out that money on the sidelines doesn't guarantee anything. i am also a bit perplexed by the mad rush to buy OEX calls in the face of a less than exciting market: decisionpoint.com the bearish sentiment that is allegedly so thick right now has yet to find it's expression in the form of bearish positioning.

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