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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: BigDaddyMac who wrote (5350)	7/3/1999 4:32:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 8218

I Don't think it's news; just the results of Momentum. The entire market is Mo Mo, has been for 3 years, earnings are just some fable often made up to fit the curve. It's all liquidity with a tug of war going on between cartels that include a strategy of how to out maneuver the other cartels. The Mo Mo in IBM is the ace in the hole of a gang I call the money monkeys. They sold tons of calls and as she has gaped up they covered the calls, buying stock on margin and letting the calls take out their margin. When she starts down they will sell puts and short the stock to let the puts close their shorts. It's all Mo Mo. Stock shares are nothing but commodities to be traded and almost any big issue has it's big players who milk it both ways. Earnings and news are just rhetoric to keep the public outside their loop. This stock as well as any other may go up on bad news and sell off on good, but it will go the way the money monkeys place their bets. They are in front of the curve and when the premo to cash they can get on out of the money calls starts to fall, then they will be ready to let her go down. Towards the bottom they will sell puts and more puts and short her till that premo to cash falls to some level which they know indicates they have got most of the bears money, at that point they cover and she starts back up. Right now they are still doing real good buying stock and selling calls. To catch the shirt tail of the money monkeys keep an eye on the premo to cash of the first few the out of money call strikes. And to what the last ones were recently, it takes a lot of digging. Whence the % of call premo goes the stock will follow. ( on tops ) They make more on the premo than the margin cost them. Buy sell premo, buy sell more premo, buy sell more premo, Then short the whole mess on the bosses signal. ----------------- When does she next report earnings ? Jim