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To: Dealer who wrote (37250)	5/24/2001 1:16:43 PM
From: Sully-	Respond to of 65232

Hmmmm....... After Tues, being long might have you join Kirk, Bones & Spock...... OOF :-\| BWDIK? Ö¿Ö

To: Dealer who wrote (37250)	5/24/2001 1:20:40 PM
From: Sully-	Read Replies (1) \| Respond to of 65232

StockHawk has an interesting perspective on investor behavior/psychology...... From: StockHawk Thursday, May 24, 2001 12:45 PM Larry, that was another interesting article (btw it's Hickey not Hicks). One of the interesting lines was this one: Hickey said. "People don't care about valuation. They just haven't learned anything." One of the plausible reason you hear why technical analysis should work is that stock price movements reflect the emotions of market participants, and human emotions do not really change over time - collectively people do make the same mistakes over and over again. Perhaps what Mr. Hickey is saying is true, perhaps people have not learned about valuations, and are still prone to follow the heard and overpay for a good story. And perhaps there is something else many have not learned, even Mr. Hickey, and that is how quickly things can change. One of the reasons so many people paid such high prices for so many stocks was because they were able to extrapolate current events into the future. A company's earnings improved 110% this quarter therefore they can improve 110% a quarter into the future. Internet usage doubled over the last 100 days, therefore it will double again and again. Mr. Hickey seems to feel that although stocks have fallen, they have not fallen enough because earnings have falling right along with stock prices. If I'm paying $100 for a company that earn $1 that is just as foolish as buying the same company at $10 after earnings have fallen to 10 cents. What's missing from his argument may be that the market always looks to the future. Yes earnings are depressed now. Yes inventories are too high, book to bill rates are too low, growth has slowed during this economic slowdown, but are these factors permanent? In many cases the answer is probably "no" and the market may be seeing this even before it happens. Or we may have to resurrect the WPA and sell apples on the street corner. StockHawk Ö¿Ö

To: Dealer who wrote (37250)	5/25/2001 7:40:15 AM
From: Dealer	Respond to of 65232

M A R K E T .. S N A P S H O T -- Bracing for some modest downside Markets to focus on data, Greenspan remarks By Julie Rannazzisi, CBS.MarketWatch.com Last Update: 7:30 AM ET May 25, 2001 NEW YORK (CBS.MW) -- Action in the futures markets are pointing to some modest downside at the open Friday in what traders expect to be an extremely light volume session ahead of the long weekend. June S&P 500 futures erased 1.50 points, or 0.1 percent, and were trading roughly 2.50 points below fair value, according to HL Camp & Co. And Nasdaq futures slipped 3.00 points, or 0.1 percent. With one eye on the upcoming Memorial Day Holiday, investors aren't likely to generate many waves in the marketplace Friday. The stock averages have spent most of the week within the tightest of bands in the absence of additional catalysts to bring in fresh buyers. The market will get to react to remarks from Alan Greenspan Thursday evening before the Economic Club of New York. The Fed chief said the economic slowdown hasn't yet run its course and that the central bank is ready to step in and slash rates again if needed. "The period of sub-par economic growth is not yet over, and we are not free of the risk that economic weakness will be greater than currently anticipated, requiring further policy response," Greenspan said in his prepared remarks. In the Treasury market, investors bid up prices as they took comfort in Greenspan's words after crumbling late Thursday in the aftermath of hawkish comments from Fed Governor Laurence Meyer. The 10-year Treasury note tacked on 7/32 to yield ($TNX) 5.46 percent while the 30-year government bond added 11/32 to yield ($TYX) 5.82 percent. The Treasury market will observe an early 2 p.m. close Friday. After a painfully slow data week, the market will finally get some fresh numbers to crunch: April durable goods orders, seen falling 2.3 percent, April existing home sales, expected to come in at a 5.28 million rate, the May Michigan consumer sentiment index, seen coming in at 92.7, and the revision to first-quarter gross domestic product. View Economic Preview and economic calendar and forecasts. Checking the currency market, dollar/yen put on 0.6 percent to 120.53 while euro/dollar edged down 0.1 percent to 0.8568.