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To: Stoctrash who wrote (48909)	7/30/1998 2:05:00 PM
From: Lee	Read Replies (1) \| Respond to of 58727

Hi Fred,..Re:<<bond yields>> Thanks for the alert. I did see that note on the Idea thread. We have declined from 123^14 on July 24 to a low today of 121^24. I started to buy calls based on the previous 3 days decline and figuring that an ECI high number is already priced in. Looks like it was now. SP8u has gone from 1173 to 1127 yesterday which almost qualifies for the 5% decline so looks like an opportunity to go long Sept bond looking for around 5.65% or 123^10. From 122^20 to 123^10 = ~ 23 ticks or 718.75/contract or half that for options. Looks like a good risk/reward scenario. We only have the 2Q preliminary GDP tomorrow morning to get by. If the number is weak as most think it will be, bonds could rally pretty good from there especially considering the last few days of selling. Will look for an opportunity (entry). Regards and Thanks, Lee

To: Stoctrash who wrote (48909)	8/3/1998 1:03:00 PM
From: Lee	Respond to of 58727

Hi Fred,..Re:A: Over then next three days, 10 year note yields fall by 20 basis points on average in 10 of 12 past occurrences. This rally develops into a healthy decline in yields over the next three weeks. US8U got to 123^10 so that would have been a good move. Too bad I didn't go long. Actually, from the low of 121^24 where the 123 call went for 27 to today where the 123 call is at 59 would have been really nice ~ 500/contract (assuming no slippage). Three more weeks of decline in yields at the current rate would get us way below Fed Funds so maybe we're there on the move? Unless we get more overseas buying otherwise known as flight to quality. Next time I'll act - ever heard of procrastination from too much evaluation? Regards, Lee