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Strategies & Market Trends : Tech Stock Options

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To: Robert Graham who wrote (41761)4/29/1998 12:29:00 AM
From: Gersh Avery  Read Replies (1) of 58727
 
Robert Graham

By currency valuations, I've come to the conclusion that there is liquidity being removed from our markets by foreign investors.

We know for a fact that the BOJ pulled some out by cashing in a pile of bonds.
In addition, Japanese investors would be slow to buy the bond dip, knowing that at any moment the BOJ could nuke their latest investment.

I would guess that foreign investors, for the most part, would have their monies in the funds.

If that is the case then lately the funds have been pulling back a little toward cash..but just when they have almost hit their cash target, another block of their cash reserves vaporizes..so they have to sell a little more stock.

So..We then still have the picture of strong cash inflows (from IRA,401 etc) but a net loss of cash .. yes .. liquidity...

kinda like strong curbs to the upside only.

And if this a liquidity problem .. then there can be no rally.

Gersh
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