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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: donald sew who wrote (27332)	10/29/1997 8:01:00 AM
From: j g cordes	Read Replies (2) \| Respond to of 58727

Morning comments: To those who took long positions yesterday on the predicted reversal...good going. This morning is when you want to get out on the open. The 50 point pop will be short lived and you'll be part of a crowd selling into Greenspan's testimony... which will be trading neutral for the the next two days. He will continue to dampen over enthusiasm, and support generally bullish sentiment.... basically an "I told you so" from his previous testimonies on the bubbles in markets and the non-inflationary underpinnings of a locally great economy. More important to understand is that option' premiums are at a high right now. The odds are grossly in favor of selling puts and calls not buying the right to hold them. Premiums will have to shrink over the next week. There are still some special situations of course, but keep all bets to a short time frame for profits or cutting losses quickly. In my opinion this was not a US crash. Period. This was our reaction to someone elses crash. Throw out all the comparisons to '87. I was trading then and this isn't it. Technically one can draw some comparisons for extreme trading notes... how wonderfully easy it was to get into and out of trades yesterday for example. How would that translate in a real crash. Anyone find stocks up the last three days in a row? Good trading, my comments are for those into options, there are sound long term buys here and some sector changes in progress to go against. Jim