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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Paul Shread who wrote (34662)4/23/2002 1:49:52 PM
From: ajtj99  Read Replies (2) of 52237
 
Paul, from what I see in your post, your buddy is suggesting that the Dow June average futures are still around 10,400 and that the hedge funds are trying to force them to delta hedge early so they can lock in some profits at a much lower level, as the MM's will not have started to delta hedge yet.

That thinking seems to indicate the hedgies want 9500-9600. It makes sense if 10,000 Dow breaks that they will have to take it to 9500 just to make the futures work out for June. The only difference is that the hedge funds think they can force that right now rather than in June when it will most likely be a voluntary event (initiated by MM's).
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