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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (325242)	8/1/2006 6:25:28 AM
From: Real Man	Read Replies (1) \| Respond to of 436258

Yes. It appears to me, though, the program trades are options market arbitrage. It works to align options and the market. Thus, low volativity. The whole thing is like 1987 portfolio insurance multiplied by 100, and certainly depends on the Fed providing liquidity at crucial turns. In other words, when this market finally turns, if ever, a crash will be very likely. No, I don't think it will be slow motion. On the other hand, I'm sure the Fed is very aware of it. -g- The reason is, if the market move down exceeds a certain number of standard deviations, options market shifts in reverse gear, as happened in May-June. The Fed was quick -g-