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

To: Brian Moore who wrote (14858)	3/15/1998 5:16:00 PM
From: Terry Rose	Read Replies (1) \| Respond to of 18056

Brian, As I wrote earlier, I will post the source of information when I can locate it. It was a credible source, and you are right that it's speculation that the Fed was involved, however the 5000 long contract purchase was not. This purchase was noted by other traders, and the market turned on a dime. Given the amount of margin necessary to purchase these contracts, it was someone with deep pockets and either a lot of luck, a lot of testosterone, or some underlying motivation. Since, the Federal Reserve does not allow it's books open review, this could be done without public knowledge. Also, the Federal Reserve is not part of the government. It's anybody's guess as to how long the current market mania will last. I suspect that a rise in the Japanese interest rate will be an early warning sign. Terry,

To: Brian Moore who wrote (14858)	3/15/1998 5:17:00 PM
From: Simon	Respond to of 18056

5000 long and the fed....>>>> Actually it wouldn't cost that much in the Futures market.

To: Brian Moore who wrote (14858)	3/15/1998 8:30:00 PM
From: Mike M2	Respond to of 18056

Brian, you are correct that there is no proof that the fed intervenes during severe mkt breaks but some knowledgeable mkt observers believe they have. I agree. We know that governments intervene in the currency mkts why not the stock mkt. Some time ago I was told that fed governor Heller wrote an editorial in the WSJ 10/27/89 suggesting that the Fed should have a policy of intervening during severe mkt breaks. I have not seen the article myself but I intend to look it up sometime. mike