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To: Gersh Avery who wrote (2599)	4/23/1998 9:12:00 PM
From: MonsieurGonzo	Respond to of 11051

Gersh; RE:" Yen Song " >the Yen tonight will sing a song... How very nicely said, Gersh. >Don't know if it will be pop or blues... TYX.X index reversal now almost certain. JY98M Japanese Yen Futures at the very top of its DownTrend channel - a Doji candlestick -- indecision; a meeting of opposing forces... ...EWJ - the NIKKEI 225 WEBS - is at the same place, precisely correlated with the JYen Futures and TYX.X 30-Y Treasury cycles. We should short EWJ @ 10-1/2 +/- 1/8 STOP 10-3/4 and sell May PUTs on USTreasuries @ TYX.X = 59.66 : If the NIKKEI busts out, we'll cover EWJ down -1/4 and let them "put" the bondz to us at strike price minus the cost of the PUTs we sold. If the NIKKEI falls as expected, along with a rise in bonds, we'll cover EWJ @ 9-7/8, up +1/2 and close the USTreasury PUTs when TYX.X hits 58.86, +.800 basis points. >Whatever it is should sing the song for Wall St. Friday. (inverted of course) BKX.X Banks and XBD.X Broker-Dealers may be correlated to this relationship that you've found too, Gersh. If they rise with the LongBond's rise and JYen's fall (or vice-versa) - as XOI.X and OSX.X respond to CL98M Crude Oil Futures - we'll have us an arbitrage machine involving the JYen Futures, the NIKKEI 225, the USTreasuries, and interest-sensitive stocks within the BKX.X and XBD.X sectors (^_^) -Steve