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To: Andrew Vance who wrote (10148)	12/5/1997 12:01:00 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 17305

Options in Egghead are very volatile....something coming up in news, perhaps? <e>

To: Andrew Vance who wrote (10148)	12/5/1997 2:46:00 PM
From: Trader X	Respond to of 17305

Way to go on TDFX Andrew! Here's something to ponder re:treasuries this off a wire report: U.S. TREASURIES: U.S. Treasuries had erased most of their steep losses by midday Friday, after the benchmark 30-year bond fell more than a point on the stronger than expected employment data. Traders said hedge fund buying and short-covering was the main factor in bringing the long bond off it lows for the session. At midday, the benchmark 30-year was down only 3/32 to yield 6.05 percent and the 10-year had given up 6/32 to yield 5.86 percent. PRECIOUS METALS: In early afternoon trading Friday on the Comex division of Nymex, gold for February delivery was up $1.70 to $290.20 an ounce --- ok. think about this a moment. the long bond cratered this morning after very strong economic data. THEN the hedge funds helped it recover with heavy buying. Whoa! We have a long bond at multi-year low yields, yet the hedge funds are sopping it up on ANY and EVERY dip in price. WHY??? Rates are going lower still. They know it. we know it. Wall St. knows it. And that's why stocks are still going up. Falling interest rates are putting higher floors under the market. But there comes a point when falling rates are bad for the market, because they signal a falling ECONOMY. When the market starts to smell this coming, look out below. As it is, the Techs are already depressed and could be a leading indicator of economic sorrows. I think the Techs are a key componant to the economy and the fact that they are diverging from the Dow right now is like when the Transports would diverge before the Dow and foreshadow hard times. -Kevin