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To: yard_man who wrote (7289)	9/30/1998 3:52:00 PM
From: Defrocked	Read Replies (1) \| Respond to of 86076

Sell programs, briefly. Institutional funds sell futures contracts for hedging of later stock sales. These sales push futures below fair value and the arb. guys buy the futures at a "profitable" spread and simultaneously sell the baskets on NYSE. These so-called "program sales" are often not "riskfree arbs" since many are using target baskets to replicate the SP500. To complicate matters, some bullish fund managers are trying to step in front of the arbs. and buy from their bearish brethren. Great market! But retail customers should avoid this pit now. Margins could even be increased for this volatility. Watch the 8.2 fair value spread +/- 1pt....when its lower than that=sell programs, above=buy programs. FWIW.