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To: Bill Harmond who wrote (101122)	4/16/2000 11:44:00 AM
From: GST	Read Replies (3) \| Respond to of 164684

William: A scenario (a bit too cute but plausible) Margin calls and no bids takes us to 3000 early in the afternoon but short covering and fresh cash cut the losses in half in late trading. Tuesday we see fresh selling and temporarily breach 3000 but then rally really hard as speculation of a bottom grows and we end up in positive territory. By Friday we are at 3600 and wondering what happens next. People examine half-empty half-full arguments and the selling resumes again next week over rates uncertainty.

To: Bill Harmond who wrote (101122)	4/16/2000 12:10:00 PM
From: Sam Citron	Read Replies (2) \| Respond to of 164684

>>QQQ's can be shorted without an uptick Incorrect. Like any other NYSE stock, you need an uptick to short QQQ.

To: Bill Harmond who wrote (101122)	4/16/2000 1:40:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 164684

"From what I can find out, the Merrill HOLDRS and the QQQ's can be shorted without an uptick, unlike their underlying stocks which must be. IF those derivatives are not subject to the uptick rule then that can explain some of the visciousness of the sector's decline and we're in for a helluva rally at some point. " You are correct that no uptick is required on HOLDRs or QQQs. I'm not sure why you think that would make the underlying securities fluctuate in price though. The underlying are held in trust in depository vaults, and there is no corresponding selling of these securities because someone went short. I doubt that the tail is wagging the dog. Regards, Barb