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To: JSB who wrote (10501)	9/18/1999 3:14:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

This was a choppy week; yesterday's "rally" must have been all big caps because I didn't see many major gains in my portfolio except SILK and DCLK where my remaining holdings are small (just seed corn for future splits). I ended the week slightly down but the daytrading actually kept my head above water. Still not sure I could match my current salary just trading full time but it could be fun to try if I could ever take a few months off from Uncle Sam. This week I made more trading at night than working during the day. FRNT closed over 10 which is key: I will hold my extra tranche unless it drops under 9 1/2 which would be back to breakdown land. Still expect 13-14 in the near future. I told you golf is an expensive hobby.

To: JSB who wrote (10501)	9/18/1999 7:38:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

I just finished raising a few stops and adding a few more, but overall I am less concerned about a major market pullback right now after looking at the charts the past three years. In 1997 we had a gradual 15% pullback in the Naz from October - January. Then 1998 had a sharp 25% dip from August - early October, followed by an immediate rebound. This year we already had a 15% Naz drop from July to August and another immediate rebound. We could see a repeat of that drop (I still have my October 118 QQQ puts) but I don't see the trigger unless the Fed raises rates October 5. And that seems less likely as time goes on with relatively benign inflation. The Y2K bugaboo should be less of a problem then anticipated too. Almost all major systems in the US are reported tested and ready. You have to make the argument that other key countries will have major failures (unlikely) and the ripple effect would take us down. I think it will be a hard argument to make. So I am not going to go into major defensive mode unless we see some serious earnings misses in October. Then I will short XLK big time, because the big cap techs are pumped on steroids again - they could shed 20% each without blinking if fund managers race to lock in gains for 1999. Food for thought.