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To: Trader X who wrote (9253)	10/28/1997 8:22:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 17305

Perhaps, perhaps not. I imagine World Markets will chill tonight....but for traders to ignore likely problems is dangerous. Economics in other countries affect our multinationals... Derivatives, now that you bring it up, are intertwined globally. A crisis in derivatives really will whack markets. DJIA 7600 should be resistance. Under pressure from other countries looking for stability, the government likely pushed for stock buybacks from corporations....just as they did in every other crash during this century....(Of course, I don't know if they really did, but it seems likely---what other government in the world can affect a market like the US government can?) We should expect wider swings....these 350, 550 point collars will become much too tight If this rally fails there has been too much technical damage to believe in the buy the dip philosophy The bright spot, INTC, I missed---dammit---by the time I realised it got to my buy point it was back up. Greenspan will be cautious in his comments now that the market rallied. As far as options derivatives players are concerned, the edge was equity call buyers over the past few weeks. Yesterday and today had Index and equity put buyers out in force....generally, traders look for large blocks to guess direction...failing that, small lots are looked at from a contrarian point of view. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ All of the above is meaningless. It is meaningless because it does not suggest a specific direction...up, or down. I do not presume to forecast, at this point, which way the break will go....the above might provide clues. Insofar as I have moved mostly to cash, it will make little difference to me. On the other hand...it will make a difference to people holding stock if the market breaks. It's unfortunate, but as usual I am not as bullish as you, however.

To: Trader X who wrote (9253)	10/28/1997 9:08:00 PM
From: Robert F. Newton	Read Replies (1) \| Respond to of 17305

Re: We hit bottom today. - Kevin: I was a bit surprised by the rally today. I thought we would see a couple of days of bleeding and the DJ in the mid 6000's before the rebound. ........ Overall, I am still bullish and expect to jump back on the northbound train. Are there any specific sector which you feeel more bullish than others. The world is much different today than it was 10 years ago. There is much more 401K type money in the market which will not be easily removed. People are betting on the long race and inevitably the market will move upward. Where else do you put your money these days to get a decent return? Here's looking to a DJ of 10,000 by the end of '98..... Best of luck to all....... Regards, Bob Newton . P.S. I had my limit order in for INTC @ 69+ which did not get executed. Unfortunately ;(