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Pastimes : Ask Mohan about the Market

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To: Joseph G. who wrote (6391)10/28/1997 8:51:00 AM
From: IceShark  Read Replies (1) of 18056
 
Joe, Well Abbie J Cohen just started to pound the table and upped her stock allocation to 65 from 60%. Man are the touts out in force trying to keep the milk and honey flowing. Liquidity will be a key as to how long this crashes. I made a post awhile ago which mentioned how fund inflows the other week put on the brakes and dropped to a few hundred million, which in hindsight was a nice red flag.

I have been thinking about these circut breakers and am beginning to wonder if they do more harm than good by dragging out the process. Wish I knew what redemptions were running at. Then we have bonehead fund managers and momentum players that might want to protect YTD performance. Then we have margin calls that should begin hitting this morning. Then there is all this derivative participation and new "products" we never had before. Just caught a snippet about those mini S&P's (I think) and if you went long you have just blown through your margin and are over 100% in the hole. That ought to make people happy. -g-

Employment cost index came in not so good and S&P is lock limit down. With all these positive feelings, maybe we can see a tentative bottom today because we got a good chance of blowing through 550 with plenty of time and steam left in the day.

You still going to try and hook some index puts? Who the heck is going to sell them to you?

Regards, Dan
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