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To: Sarmad Y. Hermiz who wrote (64395)	6/24/1999 2:35:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

Important -- to all -- my take on low volume these past weeks: (1) the pros don't see much upside but want to stay pretty much invested. (2) Flows into funds have tapered off. (3) Lots of small-time traders are under-water and are either reluctant or unable to commit more cash. (4) There is a large short position under the market as a whole which provides some upside potential, but there is no pressure to cover. Conclusion? We have a dangerous market that could break either way. Interest rates may crest -- as so many expect -- and perhaps it will be in the next few days. This expectation breeds complacency, and this is a real danger if interest rates continue to go up. As rates go up the pros will rotate to bonds. The small timers will watch in anguish as their 'sure thing' tickets to easy street get slaughtered and their margins get called. Fund flows will turn more negative. Is this possible? Definitely. We on this thread have indeed been surfing on a bubble -- and you get used to it and forget just how wrong things can go if the bubble pops. Have fun -- make money -- but remember the risks are real and the repricing of assets has been know to happen with a big, sudden, heart stopping drop -- 87.