Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: AlanH who wrote (44891)	6/4/1998 9:12:00 PM
From: Lee	Respond to of 58727

Hi Alan,...Re:<<Put buying in Project A session>> Don't know whether it's a hedge or not, just suspecting this in the face of tomorrow's number. Could also be dollar weakness, although $ showing +0.16 tonight at 99.71 which is the same number as showing down 0.09 earlier? I think all the June currencies expire tomorrow so maybe I'm looking at bad data since I haven't changed over to the September contracts. (July numbers for Sept. currencies) On bonds, CNBC reported a research tidbit that 93% of the time that the bond was down going into the June jobs report the market was down the following day. Unfortunately it wasn't clear if that was the stock market or the bond market and although I have data going back 4 or 5 years, it's too late to drag all the tapes out and retrieve it. Eventually hope to get organized enough to keep monthly charts with pertinent data affixed. Congrats on your big bananas win today, that was really nice. Regards, Lee

To: AlanH who wrote (44891)	6/4/1998 9:36:00 PM
From: Lee	Respond to of 58727

Hi Alan, ..Re:<< An additional factor is that UT was down hard today>> I'm sorry I forgot about UT. Don't know what that is. Is it UTY or UTIL? I haven't been following the UTY index lately because people are rotating money into USA safe securities apart from interest rate concerns. Seems like they are just looking for safe parking places and a little dividend doesn't hurt so, to me anyway, it's somewhat disconnected from the rate environment. Especially since we are faced with continuing disinflation. If we see wage (service type) pressures, they'll just point to the 1.1% increase in productivity to be an offset. We've had 'inflationary' wage growth for about 6 or 8 months now, 4.4% yr/yr, so I don't know if bonds will pay attention to it tomorrow if it's in that range. Regards, Lee

To: AlanH who wrote (44891)	6/5/1998 1:18:00 PM
From: Lee	Read Replies (2) \| Respond to of 58727

Hi Alan, ..Re:<<Project A trades>> According to the final options and volume for Project A session for June 4, looks like there was buying in the 121P and 122P. cbot.com I think since it was pretty light that it was hedging, (hindsight).<ggg> Today was a dud for a bond sell-off and worse CNBC saying the loss in manufacturing jobs, (26k) due to Asian slowdown. Did we sell them clothes? I don't think so. stats.bls.gov Manufacturing employment fell by 26,000 in May, after 3 months of little change. The largest decrease was in the apparel industry, which continued its long-term decline with a loss of 9,000 jobs. Most other industries experienced small employment losses over the month. Employment in both electronic components and industrial machinery declined for the second month in a row; these industries had added jobs steadily during 1997. In contrast, the furniture and fixtures industry continued its recent growth, adding 3,000 jobs in May, and employment in chemicals and allied products also rose by 3,000. Anyway, I would be interested in your thoughts as to why the bonds are rallying in the face of all this (especially consumer spending) when you have extra time. $ is good (100.12), July crude is only up a penny right now and unemployment rate still at 4.3%! Are we having foreign buying of bonds since it's not a flight to safety from stocks today? I don't understand and any help is greatly appreciated. Regards, Lee PS/Edit - Could it be the floor traders shooting for 5.75% and trying to take out some stops?