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To: IQBAL LATIF who wrote (30077)	12/14/1999 2:03:00 PM
From: the options strategist	Read Replies (2) \| Respond to of 50167

Getting A Leash On The "Dogs Of The Dow" 12/14/99 9:20:36 AM "An investment strategy that has gained in prominence over the past few years is the "Dogs of the Dow" approach. The theory is simple. Although there are varying forms of the strategy, its most common forms are to buy either the four or 10 stocks within the Dow Jones Industrial Average with the highest dividend yield. The thought being that the high-dividend yields are a sign that these stocks are undervalued relative to the rest of their Dow brethren. Over time, this strategy has been shown to have solid results, but that is really immaterial to the forthcoming discussion. What is interesting about the strategy is that its popularity may actually be responsible for moving stocks rapidly near the end of the year, as practitioners of this theory rush to buy the required stocks. This appears to have been the case at the close of 1998. The first table below shows some of the top-yielding Dow names at the outset of 1999 - including Caterpillar (CAT), International Paper (IP), J.P. Morgan (JPM), and Minnesota Mining & Manufacturing (MMM). All were strong "Dogs of the Dow" candidates. Note how these stocks performed strongly in the three-week span from December 18, 1998 through January 8, 1999, although it should be noted that the S&P 500 Index (SPX - 1415.22) logged a 7.3-percent return over the same stretch. Taking this line of thinking one step further, the question naturally becomes, what Dow stocks may benefit from the rising popularity of this investment strategy? The second table below shows the current list of the top-10 Dow stocks in rank order from highest dividend yield to lowest yield as of the December 13 close. It's pretty much the same cast of characters as in years past with one notable exception. The reshuffling of the Dow this fall which led to the inclusion of SBC Communications (SBC) places it number ten on the list. It will be interesting to watch the trading of SBC to see if it benefits from its inclusion on the list." MO JPM EK CAT GM 3M DD IP XON-MOB SBC Schaeffer's Investment Research

To: IQBAL LATIF who wrote (30077)	12/15/1999 1:12:00 AM
From: J.T.	Read Replies (1) \| Respond to of 50167

Ike, Greetings to my older "baba" from all of us at MITA. In the face of this bond debacle today, can you give us your updated support and resistance levels in bonds, spoos, SPX cash and this SOX. General Broad market read would be nice. MITA and other inquiring minds want to know what lurks in the mind of THE MAN. Send the boys in the Chicago pits my best as I have highest regard and admiration for them. Even if I spout off few days out of 365 a year. IKE, Now what did you do... teach your boys not to respond back to me?<g> Zain, what results do you have back from your CIS paper? Do you want me to be THE PROFESSOR? <ggg> Best Regards, J.T.

To: IQBAL LATIF who wrote (30077)	12/15/1999 6:15:00 AM
From: JDinBaltimore	Read Replies (1) \| Respond to of 50167

Good Morning Master Iqbal, Another very nice call yesterday! I thought it was a basketball game, I think I counted 6 bounces off 3200 NDX before falling through. The best to you and yours. John

To: IQBAL LATIF who wrote (30077)	12/15/1999 7:22:00 AM
From: IQBAL LATIF	Respond to of 50167

The following two messages literally covered the entire move yesterday, we had this 1432 area where we highlighted the break on SP00H and 3200 on NDX. We did see below 3200 some good selling but 3165 held very well , we are below 775 a key BKX support but bond yields are inching higher I woudl only see a revivval in the fortunes of the marekt if 6.25% is taken out but not if we see 6.25% yield being broken if market is selling sharp( the reason being that market sell off is going to result in a rally in bonds.. the reason that bonds are heading south is that bond market wants to cap this blow off phase of the rally that is Comp and NDX ..asset inflation).. below 1400 on SPX we have a sharp possiblity of sell off that is to my level of 1398 on SP00H. <<Similarly if we break 775 on BKX and 2165 on NDX we may see SP00H to test as low as 1398 during a course of this week, we sit at a very important point here, we have had several attempts to take out 1442 area on SP00H the old 1428 on SP00Z, the market is so far range bound and in my opinion we may see a good movement on the side that it takes out..>> <<Higher bond yields as a result of higher retail sales .9 above consensus of .4, although the core was in line the SP futures did not like this higher retail sales if we see further weakenesss in bonds I would not be surprised that 1432 support may be taken out and we see more pressure, but keep an eye on the NDX that is the key index I am watching this 3200 support now...as important inter day indicator rising bond yields and falling below 3200 we may see some reversal... if we hold on we may retest that 1442 resistance, more thna likely chances of piercing it are receeding in view of bonds.>> I will like 592 and 775 on SOX and BKX to be mainatained if we are going through it nad we have a close below 2165 on NDX we are goign as low as 1020 on DOT and 2050 on NDX, with Orcl and others coming with nice earnings the semi conductors sell off of yesterday may hold this 592 support area today.. a rebound above 3215 may lead us to SP00H 1432 test thati s my resistance today, we may test it but not hold if we go through it we may move higher but probably we will fail plus minus 3 points on 1332 and retrace back thsi market likes to test the old 1382 support that is 1398 now on Sp00H, on NDX my key watch today would be 3200 resistance 3215 fake out rally, and 1432 resistance, supports are well identified a break of 3165 will keep the pressure on NDX as well as DOT.. that will inturn help the move to 1398 area.. BKX will play its role to.. on transportation it is a long call, utilities are making new lows and according to DOW theory this is a kind of strange. so we are seing here a good rotation from NDX and winners may be DOW laggards.. like yesterday SOX and others were down 5-to 4% but DOW relativley maintained its grounds, it clearly indicates that we will see a rotation and not a huge sell off.. MSFT ORCL may help, the rumors that agreement is around the corner on MSFT can take this stock to 115.. very easily. INTC is at support and looks like a long here so does ALTR XLNX if 592 is held.. in these kind of markets we have to short and long.. short in sectors where we have seen excesses and long whrere we have been laggards... in the end look at DOT it tested new highs yesterday but closed below previous day high and thati s for me a interim reversal.. although undoubtedly the bull run is in tact until 1368 on Sp00H is not taken out or 950 on DOT or 3030