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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (2339)	4/16/1998 8:30:00 PM
From: MonsieurGonzo	Read Replies (2) \| Respond to of 11051

Gersh; RE:" Liquidity vs Options Flux " >Based on the amount of liquidity that is sitting on the side right now .. I suspect that we will be seeing a global scale "buy on dip" this afternoon. Does this make sense to you ? What I'm seeing is a lot of pops up to / near options boundaries ("options flux") in combination with sectors being rotated; ie., whole sectors like "aluminium" or "forest/paper products" are being manipulated - probably end of quarter portfolio re-alignments on top of all the other stuff going on. If you were a MM, wouldn't you have taken your +30% off the table in late March, before earnings ? Crude Oil and Copper commodity prices are rising - the XOI.X popped today, but the OSX.X didn't follow through with the pop it made the day before, which puzzled me somewhat. If oil continues to rise, the XAL.X and DTX.X transport sector will go down and the XOI.X and OSX.X should go up. The TechStocks are more difficult for me to read. MSFT and SAP look ok, but there's all kinds of PC's and parts in the channel. What I find most interesting right now is the position of the FED. The BOJ has to sell US Treasuries to finance their economy. The FED is in a great position - it can dump BOJ treasuries on the market and keep our interest rates from getting any lower - I expect bondz to be in a managed 'trading range' for some time; ie., I think that the FED will use the BOJ's treasury auctions as a means of setting monetary policy, at least for awhile. You're right-on about all the $ flowing into the MM's, Gersh! What we wanna do is figger out what sectors this capital is gonna be rotated into for the next quarter. Right now, they're digesting earnings reports to find some rationale for putting it somewhere. There's rumours over here in the EU that this continent's defense firms may consolidate as ours did during the last few years. The big corporations are becoming truly huge everywhere. Well that's my deux centimes (^_^) What're your views ? -Steve