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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (24119)	6/5/2000 12:46:00 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 42787

Gersh, thanks for alerting me to the post market sell off. I rechecked my numbers and I was waaay off. You are correct in that the open as far as GLOBEX trigger biases are for a down open. I show we could be up on GLOBEX over 2 points and still be in sell territory. Fair Value is in the high 3s. Well I am not one for a lot of answers this weekend since I did everything but proper research. But I am full of conceptual dilemmas ( sp). One of the posters on our site just raised the issue of margin again and then Les made a good point about debt being private. I went back out to do some yard work and started mulling all this over again. ( Yard work makes me think too much <gggg>). OK, The brokerages started raising margin requirements as the risks in the market got too euphoric and non realistic. This high margin left the institutions vulnerable so they raised the requirements first on Dot coms, then on some of the semi-conductor speculative issues, B2Bs etc and many are now raising for "normal stocks now according to some of what I have read and my latest Waterhouse mailing. Anyway, J6P is used to having leverage so what is he going to do? It suddenly occurred to me that all we keep hearing about lately is how more brokerages are going to ease option requirements, how they are all going to get together and make options easier to trade, lower the costs etc. Basically, if we can get the average buy and hold guy to start moving into derivatives that don't have ANY value or broker leanings we drop the risks to the institutions. If they can get John Q Public to start buying calls instead of stock, they can eventually have this house of cards fall without risking broker blow ups that risk global margin and derivative markets. Just a thought. >>the dollar is strong against the Mexican Peso tonight << I show the dollar sitting on important support here and it is quoting down 32 cents on the DXY real time chart. There was a large bearish engulfing on the weekly two weeks ago that doesn't look pretty so this is probably not a test of support but a failure in the making. How will this affect the other markets? Not sure since I do think the NASDAQ could have more upside mid term. Good Luck, Lee