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

To: J.T. who wrote (30471)	1/14/2000 4:39:00 PM
From: J. P.	Read Replies (1) \| Respond to of 50167

I was watching the bond reversal also, because I'm looking for an entry point to CitiGroup and Chase Manhattan. I never got my entry point, and yet the yields kept rising, the bank stocks continued to rise also undeterred. The BKX and the bonds are giving us very mixed signals. I won't chase the bank stocks here (today), because the oscillator showed an overbought reading yesterday, and now it is max overbought according to my indicator. C is a good breakout play here, but it needs to drop to fill the gap and relieve the overbought condition. No point in paying inflated volatility premiums on an up day the percentage gains in properly timing an entry point are worth the discipline. Had to be content to enjoy the runup in Microsoft. I look for more upsid

To: J.T. who wrote (30471)	1/19/2000 4:20:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

JT-- I would assume that if you buy June contract 92 expiring in May for 31 I think if I am right, you have hedge on this market. This higher bond yields are pricing in .50% increase and we are at the double top on SPH, we have failed that 1482-88 area in last few attempts, that tells me to have these bond positions firmly established and continue to add on until 6.95-7.00% level. BKX has seen the erosion and despite of good earnings by JPM beating estimates by 63 cents and Citi group too we saw the stocks losing momentum. After CPI benign number if we get few others in a row confirming low inflationary pressures we may see that bonds will rally smartly from here however if bonds keep heading south we will see profit taking activity to garner strength and if we break this 1442 area we may retest the old low of early Jan. Bond for me is a good bet, I am taking off most of my heavily in the monies like PMCS ETEK (merger benefit) and PSIX and replacing the new positions with out of the money calls, that has been my strategy, on one hand building up my bond positions adding on from 6.69 onwards and keeping a long view I know I will see my levels, if markets break as asset inflation is the greater worry I will do good in bonds and below 1442 one can start some SPH option play, I will not be aggressively short for simple reason if bond is rally why RUT is ignoring it this sector should have been the hardest hit. No one has ever beaten the earnings game here this is a market whose octane is earnings you can ignore these earnings but at a certain supports buyers jump in big.. Bond yield heading north in a rising inflationary environment is understandable but in a low inflation environment to knock out asset prices it is not a smart tool by the traditional smart bond market, they are providing an automatic hedge, I can be long in the options market and playing the put side on the price on the bonds, I know it when market will fall the bonds will provide me the hedge, so where is the risk, that alone tells me that the rising bond yields are being used by astute market players to play the downside, so I am long on one hand and on the other know perfectly well that if I keep my ladder approach on bonds I would make a bundle, time is on my side may is a long period, and below 1442 I would any way protect the downside. This is my reason that market is ignoring the bond yields.. fwiw.. look at bkx if we make a close below 750 two days in row we will see much more of selling in cyclical but keeping in view the recent earnings and possibility of bond coming back very quick I would watch and play the game as per my script keep picking C or JPM at lows and keep buying 92 June positions opti