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Technology Stocks : Stock Swap -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (14117)	5/27/1998 11:34:00 PM
From: Trader X	Read Replies (2) \| Respond to of 17305

Bond flight to safety has underpinned the market since Dec. '97. Nothing has spurred the stock market higher more than the asian flight to safety in the US bond market. It certainly hasn't been earnings, which are being consistently lowered. Nor has it been the economic picture of tight labor markets and higher hourly wages. The one thing that's held this market together has been the bond. A decoupling for 10 days doesn't convince me that stocks will dive while the bond stays strong. A couple of weeks ago I feared that the bond may actually reverse and head lower, which would have killed stocks for sure. I think the strength of the bond will ultimately save the stocks, as it has for the past 6 months. I think what we have here is a panic end to a 2 month consolidation period. Most new bull moves are begun with just this type of day, which jars traders out of a trading range. TX