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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 662.72+0.4%Nov 19 4:00 PM EST

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To: pater tenebrarum who wrote (21534)7/30/1999 11:27:00 AM
From: dclapp  Read Replies (1) of 99985
 
first, thanks again Heinz, LG and all for the great (ahem) "on topic" posts!

I agree completely with Yardeni's rate call of "raise now, lower later." I think the Fed wants to cool off the market prior to y2k (which I believe will have severe consequences), but must address already worsening credit spreads later in the year. Hence raise "to cool" then lower to add liquidity and to try and "keep money" in the market.

Given that belief, the most reasonable and prudent play for me is an October option straddle, with 3 puts to each call, each two strikes "out of the money"

Seem reasonable to you folks? :)

Thanks again for the great thread, LG!

doug
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