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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Jack Clarke who wrote (14851)	3/15/1998 2:50:00 PM
From: TRICKY	Respond to of 18056

Did anybody catch the special on NBC on what great times economically we live in . They basically profiled some people who were investing in the stock market and were doing great. The conclusion to the piece was basically that the good times should last for at least well into the 21st century. This reminded me of the "Death of Eguities" article in 1982. I can't imagine how we could have anymore mania and madness in the stock market. The end is near. I don't know when, but it won't be long.

To: Jack Clarke who wrote (14851)	3/15/1998 3:16:00 PM
From: Terry Rose	Read Replies (2) \| Respond to of 18056

Jack, On October 28, 1997, the U.S. stock market opened down some 150 points in the first 30 minutes and then turned on a dime and went up some 500 points. I was on vacation and watched the whole thing happen on CNBC. I later read what caused the reversal, and I will post the source once I can find it. Regardless, here's the story. Within an hour of the stock market's opening an order for 5000 long positions in the S&P future index was placed by somebody, and the order was interpreted by the system's computer as an error originally due to the size of the order. In any event, the S&P future index market reversed with this order and the stock market followed suit. The author implicates that the Fed plunge protection team was behind this, although the author does not have proof of the originator of this market order. My gut feeling is that it was the Fed, and I doubt that anyone else had a high enough testosterone level to have placed that order. Terry,

To: Jack Clarke who wrote (14851)	3/15/1998 7:44:00 PM
From: Bilow	Read Replies (1) \| Respond to of 18056

Regarding the market action last October. A lot of the panics in the late 20's and early 30's had that same panic down and panic up movement. In fact, I like to play rebounds (dead cat bounces), and I see it all the time. So another explanation would be that when a stock drops drastically, all the prospective buyers go to the side- lines in hopes of picking it up at the bottom. The stock then overshoots to the downside because everybody likes to get a better price, so the prospective longs wait. Then someone buys in and the market turns. On the whole, my guess is that if the Fed turned the market, we would know about it fairly soon. Don't they release their deliberations, etc.? -- Carl