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To: BGR who wrote (70782)	10/21/1999 10:41:00 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 86076

BGR, you are right about human emotions not occurring in a void. and the information they have to deal with nowadays, let's say the MAIN bit of information, is the extreme valuation of the market. the fact that stocks that miss earnings estimates by a few cents get 50% or worse haircuts in a day, proves how irrational the market's valuation is. in essence the people who have piled into the 40 or 50 stocks that hold the indices up are watching each other to see who blinks first and you'll see them rushing to the exit all at once at some point. after that regression-to-the-mean event it will be time to buy again. re: volatility, if not for volatility, how else would a short term trader make money? i agree it's not a healthy development overall, but one that can be profited from by nimble traders. let me add that i have discarded day-trading for position trading which is more suitable for me. i know of others though who profitably trade the short term ripples, even though they are clearly a minority.

To: BGR who wrote (70782)	10/21/1999 10:44:00 AM
From: BGR	Respond to of 86076

The ECB left rates unchanged, I guess mostly at the insistence of the BundesBank. With Germany just coming out of a recession, and accounting for some 40% of the EU economy, it seemed inconceivable to me that the EU would tighten, as I mentioned earlier in this thread to Heinz. As for the hawkish stance of the ECB president, watch their action and not just words. The ECB is providing excess liquidity at the same time when it is talking tough. This makes perfect sense, as even the super hawks in the Economist editorial board acknowledge that EU inflation is hard to detect. thestreet.com