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To: Jack of All Trades who wrote (67126)	10/7/1999 10:49:00 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 86076

Jeff, this ALWAYS happens when the market seems to turn up following a period when OEX call o.i. was greater than put o.i. prior to the turn. the option writers then begin to write puts to cover the losses on the calls. in two past instances this strategy failed spectacularly: in Oct. '87 and again in Aug. '98. IF the market after having seemingly turned up sinks again, the increase in put o.i. leads to more selling pressure, as the puts need to be delta hedged by short sales. i'm not saying that's what's going to happen, only pointing out the possibility. yesterday a remarkably broad consensus seemed to emerge that the 'bottom was in' on the back of less then stellar internals accompanying the rally (NH/NL worsened, the a/d line barely got off the mat and we had a negative tick for most of the day). it seems the bond doesn't count for anything anymore...well, it WILL.