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To: The Perfect Hedge who wrote (34756)	2/6/1998 7:55:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

Just checked it again, still there. <e>

To: The Perfect Hedge who wrote (34756)	2/6/1998 8:29:00 AM
From: donald sew	Respond to of 58727

INDEX UPDATE --------------------------- The overall market is no longer in CLASS sell status, but the short-term technicals are high and still hovering in the overbought region. The bias is to the downside. The NAZ definitely reversed yesterday. Many will say that the NAZ only dropped 3.5 points, but if one compares the closing price to yesterdays highs, the NAZ dropped 27 points - that is substantial. Technically, the reversal in the overall market should continue, but since this market is so strong right now I would not be surprised if it reversed back to the upside. I realise that many would say - what reversal to the downside?, but on a purely technical point of view, even a 1 point drop could be considered a reversal to the downside. XAL - just touched the oversold range. Not that it could not go down alot more, in light of the possibility of Crude rising, but it has reached the 10 day moving average already. OSX - technicals are still slightly below overbought region so there is still room to the upside. BKX(WFC)- technicals still in the overbought range. From a non-technical viewpoint. I do not have the data, but strongly feel that the volume of calls for FEB will be extremely high if not huge since the overall market has increase substantially off the the previous lows around JAN 12: DOW - Low=7448, High=8180, 732 point gain(9.8%) NAZ - LOW=1446, HIGH=1701, 235 POINT GAIN(16%) SPX - LOW=913, HIGH=1013, 100 POINT GAIN(10.95%) The above figures were based on intradays highs and lows for the period starting around JAN 12. I am assuming that during this very strong upswing the number of CALLS were huge and far outnumbered the volume of PUTS. In light of such strongly feel that FEB expiration week may be idea for a strong arbitrage situation to keep the calls at minimal profits/ expire worthless. FEB expiration week will be a shortened week since Monday is a holiday. If the market still stays strong at these levels or higher by next WED, I will be playing PUTS strongly on Thur of Fri, in anticipation for expiration week. If there is no pullback by next WED - combine these issues: 1) techinicals for overall markett in overbought region 2) plus a 3 day weekend/short week 3) plus expiration week 4) plus huge FEB call volume. 5) Clinton issue 6) Iraq issue 7) Earnings over so less good news to hold up market Compare those negatives to the positives holding up the market, keeping the focus on the period of expiration week. I am not saying that we could not continue to move up for the longer term, but what will happen during FEB expiration week. Seeya

To: The Perfect Hedge who wrote (34756)	2/6/1998 10:16:00 AM
From: donald sew	Respond to of 58727

INDEX UPDATE ---------------------- For those looking to get out of the XAL PUTS today, even though the DOW is up by 74 points right, the overall market is not showing the strength it has in the past, since the NAZ is not leading the DOW as it has in the past weeks, and is now actually lagging the DOW. So far the XAL is moving right slight ahead of the DOW as it did in the morning yesterday. Am expecting that the overall market today will be relatively flat at the close(plus or minus 30 DOW points) and do feel that sometime today so there may be a chance to get out today close to yesterday's close, within 1-3 points, as long as the NAZ does not pick up steam thru out the day. If the NAZ does pick up steam we may have a strong up day. Seeya