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To: Roads End who wrote (33636)	10/1/1998 10:00:00 AM
From: Ben Antanaitis	Respond to of 97611

Riechers, You are very correct. The Max-Pain&#153 effect is what is called a second order effect. Meaning that it can, and does, get swamped out by first order effects like breaking news, world events, Greenspan, momentum buying/selling, etc. So, to answer your question, I have observed that, during 'reporting months', the effect is subject to pre-earnings run up/down and the actual results. Thus, I wouldn't use it as anything but an indicator of the speculator's anticipation of where the results may be. Ben A.