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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Jurgen Trautmann who wrote (9135)	3/3/2001 3:33:06 PM
From: Gersh Avery	Read Replies (2) \| Respond to of 11051

Hi JT .. responding to a part of some questions from several days ago .. Commercial firms have established the largest short of the S&P futures in history. These are neutral trades -> long stocks and short futures. Two items interest me in these trades. First is the order that the trades take place. This presumes that the trades impact the market. There are many computer based trading programs out there that are based on the current value of the premium on the futures contracts. The presumption is that someone on the inside knows something. If prem falls below a preset mark, the programs sell. If it rises above another mark the programs buy. It seems to me that there are three different orders of commercial trade execution. buy stock and sell futures at the same time buy stock first, which moves the market up, then sell the futures sell futures, which moves the market down, then buy the stock which is falling out of the trees. The order which is used seems to be set to use the natural trend or direction of the market. The order of trades seemed to be in a uptrend direction on Friday until mid day. Anyway .. the second item of concern is the large volume that exists and the fact that these contracts are about to expire. This would put us in a time frame of "roll over." This rolling over of this whale could play some real havoc in the markets over the next two or 3 weeks.