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

To: Snowshoe who wrote (14125)	11/13/1997 12:27:00 AM
From: Tom Trader	Read Replies (2) \| Respond to of 50167

Hi Greg re >>Tom, I was wondering if perhaps part of your post got cut off. Would care to clarify what you meant? If the recent panic breaks out anew, I suspect we could see DJIA 6,400 soon<< What I meant to say is that any decline is unlikely to be a one day event -- akin to a crash. I have heard reports, that on the day after the big decline, the treasury/fed was believed to be active in the futures markets buying contracts to try and ease the selling pressure--so much so that the futures which opened locked limit down 15 and then 30 points then immediately began to reverse creating the environment for a rally -- program buying, etc. This seems a likely course of action in the future to maintain an orderly market and if the reports are accurate, I believe that any precipitous decline will be met with similar intervention. This will not have the effect of reversing a basic down-trend but will achieve a controlled and orderly decline--and that is what I meant by the above statement. As far as how much of a decline we will actually see, it would surprise me if the recent low of 6900+ was taken out on a closing basis. From a practical stand-point, though the overall averages have not declined to their recent lows, individual stocks have been devastated. >>(Maybe I've been spending too much time cruising the bear threads... Spending too much time with either of the threads--bullish or bearish--can be detrimental to ones objectivity:)