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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: jef saunders who wrote (19616)	6/2/1998 10:32:00 AM
From: James F. Hopkins	Respond to of 94695

You just need to know the particular option symbol you want to chart, such as vrjae ( is the jan 99, 25 call for RN ) one that I've been in and out of, and will likely go back in when this market shows me a real bottom. All these knee jerk ups and downs don't change the fact we are slowly down trending, and have been since early April, with both short term bulls and bears falling into one trap after another as the computer program trading has been dominating the market. Huge trading from Index funds that must track the S&P are creating a trading overhead that is putting more and more pressure on earnings and the inventive ways that the anal-cyst keep coming up with to place more value on stocks, to offset the ever increasing trading cost, and overhead. I can find you plenty of hype stocks that trade so much volume, compared to their shares outstanding, that their turn over cost with just the spread, exceeds in 4 yrs the total price of the stock..so you look out at 4yr growth rate and figure the stock should double , well it might but the overhead that's in it will have doubled to..in effect if any amount of people start wanting their money about half the stocks in the market could go to zero. The new stock market triggers were put in place by the SEC as a favor to the wall street insiders so they can grab the money and run when they see a rush on the market; I'm most sure they are afraid it might happen. And not if but when it does; the little investor won't even be able to get his broker to answer the phone during the sell off. BUT I can't say when, heck it could go up for another 5 years or more as long as they can keep pulling in new blood. Just know the whole thing is a legalized ponzi scam, and play your cards as such. Jim