To: gerard mangiardi who wrote (19967 ) 9/5/1998 4:01:00 AM From: IQBAL LATIF Read Replies (1) | Respond to
Any post meetings rally will have no legs it is going to be the numbers next week and if DUMA selects the PM, probably they will and also as we see XAU rising so does the fortunes of Russia- Gold and Oil prices will give a lot of boast to rubble in coming weeks if the prices are maintained..The rally we may see will come on strong numbers as they keep pouring, some more upward revisions from lowered expectations, CC price from 180 to 90 is now inclusive of much lowered expectations of earnings and earning growth for next year, market is discounting as if CC earnings may be lower or flat next year any deviation from this you will see a rally, it is always like this on up and downside things do get over done, too much of opitmism is built one on the other too much of pessimism, one needs to sell or buy puts when too much of optimism is built and accordingly buy out of mony deep calender months calls when too much of pressimism is built, easy said but difficultly followed.. best Regards-- I would anyway think that the meeting will be positive, these guys are extremely happy to see the irrational exuberance punctured without any collateral damage- AG could not have managed a better landing for the stock market. Now we need to see this 7515 to consolidate we had several tests of this level on closing basis one and intraday-- closing basis sell off gives cue to the other global markets to sell off if any fat is remaining when we had this sell off on Monday Japan and ASEA did not sell any further and even Europe stayed on course, normally I would think we would be definitely sure if we can give another cue to ASEA/Europe with that low close, I would think that yesterday action in relatively a thin market was great.gave a lot of confidence that lot of deep pockets are ready to throw money at these levels, actually we were done for the day yesterday and ray had even left the office however I just on break of 972 thought to add some put options relative cheap over the weekend, I also left for jogging came back by 930 and the carnage was in process got hold of him in his house talked with the pits and got out of it by luck- if I would be 5 minutes late I would never get the fill-- so for me leveraged derivative trading is making market a buy undoubtedly-- if a small player can sell 10 m $ worth of stock with few puts onc can imagine
