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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: James C. Mc Gowan who wrote (29134)	10/5/1999 5:44:00 PM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

AG has learnt a game called 'managing expectations' from Softies, look at my posts today I had fom very early morning and last week maintained that rates will not be raised but market will hit the supports and come back up which ever way fed goes in case of rate hike it could have been 1267 in case of no hike we saw 1297 low on SPZ.. I had to cover at 1307 break on the up but made 5$ on a put which was only 10.5$ when I bought it, so a great trade .. I had this upward target of 1324-6 area I added few points of 'irrational market exuberance' and bought these puts. on the low they were at one time bid 20 did not take them as I wanted those last 2 points to be ideally filled that never came rather we turned around and out I went like a lightening strike, a trade a clean and straight 'in and out'.. <<"...adopted a directive that was biased toward a possible firming o policy going forward. Committee members EMPHASIZED that such a directive did not signify a COMMITTMENT to near-term action...", >> This is fed at its best in capping expectations, at the end of the day Fed does not want asset inflation to go out of hand and wants that market does not move too much ahead of quarterly earnings, on total cap basis they have been succesful so far, for a 11 trillion $ cap we had 427 billion $ of earnings now for 98 end now for 12.5 trillion $ 99 earnings will surpass 500 billion $'s, I agree that element of extraordinary hype do get built in and some stocks and some sectors go wild, but 'rotational movement' of money and large scale dicthing of stocks brings values back to the sectors which at one time go out of tangent into stratosphres, all said and done that is how he functions he will let earning momentum move the market in the third quarter that happens to be the weakest quarter and market is literally sitting at 1998 end level on DOW few % age points higher, it is this 'managed expectations' ultimate objective that is waffling.. but we are suppose to know it and thati s what we do, we go into his mond and read his mond and trade accordingly...have a good day.. I hope this 'streak' continues for time to come, any day we are done for the day, nice trades and now waiting ofr the next day.. this is what trading is all about .. bi bi and good night..Amen