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

To: Joseph G. who wrote (26293)	9/2/1998 10:51:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 94695

JG, pure, market neutral, index arbitrage would be "equivalent" to buying treasuries in that comparable term treasuries would be the proper benchmark against which to measure performance. However, such arbitrage would do little by itself to support the market as they would need to sell stocks when they are buying futures or vice versa. OTOH (that's "on the other hand" for Bill's glossary), if they were the ones "painting the tape" in morning Globex as Cramer and the Squawk Box guys suggested someone was doing recently, they could fairly easily stimulate buy programs (buy stocks, sell futures) at the open, providing support to market sentiment and probably even turning a small profit in the process. Of course, I have no idea if this "PPT" is actually doing anything, but I suppose it is possible. Bob