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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (14015)	11/11/1997 9:26:00 PM
From: Nancy	Respond to of 50167

Tom, what I see from MER to retrace back to sell-off low is brokerage stocks historically lead the market by 6 month. Now everything is so compressed, may be only 1-3 months. What I feel is if financials, supposedly one of the leadership sector, starts to give in with a favorable rate environment, we are not too far off from a re-test of bottom again. Buying OEX puts cannot fully protect the long side - I painfully discover that only an aggressively deep-in-money short calls several months out could provide meaningful protection. Say, count a 10-20% drawdown on some tech issues and may be even 50% in the case of DD makers. :(