Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Stephen who wrote (55112)	10/9/1998 3:27:00 PM
From: AlanH	Read Replies (2) \| Respond to of 58727

Stephen, re:If we break thru 7900 I'll eat my hat Don't eat that hat... you might need it later in the year when it starts raining brokers. <g> We'll break 7900 and probably rest above it for the weekend insomniacs. See, it's a merciful market. Merciful, except for EK which is some Faustian apparition for Trey's torment. <g> Good luck, Alan

To: Stephen who wrote (55112)	10/10/1998 7:57:00 PM
From: Stephen	Read Replies (1) \| Respond to of 58727

Just a couple of observations, for what they are worth. During the DJIA's recovery, the tick was rarely that strong. That to me means a number of things. That the upsurge could continue as more buyers join the move upwards; that shorts covered prior to the weekend and momentum players joined in (as SSB told me) which is hardly a convincing reason to buy as long as market fundamentals look so weak.. From CNBC, the only post-close rationale I could hear was: that there was a rumour the Fed was going to cut rates (first that it was going to be Friday morning, then, when that didn't happen, that it would be announced over the weekend): that the recovery was led by the financials as a rumour about ML partnering up with another house was rumoured. The other rumour about the firm deal with Brazil so they can make their forthcoming debt payments was also mentioned (though I understand there are some doubts on the package). Simultaneously, rumours that another hedge fund or two were about to fail got put on the back burner, and the unwinding of $/yen currency positions seemed to stabilise, though no one seemed to be sure what exactly was going on. And as Japan repatriated bond US treasury monies, no one seemed to know if they were also pulling out of US equities. There's more of course, and in the past it hasn't taken much for stocks to rally - but given that scary things are out there and that much of the rally is based on positive rumour, I wonder what will happen if the rumours don't come true. If I was a cynic I would say that the rumours have been started by the pro's to give themselves a chance to get out of existing longs at a decent price.... but that could never happen ... right ??. I would rather miss any ride upwards than take this chance. Everyone said that if there was another rally it was a great time to liquidate. Now that a less than 2 day rally has happened, there are people who think it may continue ?? I think not ..... and I have my wife's hat in front of me and the salt and pepper at the ready. I still think we are in a trading range and won't close Monday above 7900 - in fact I think we'll be below 7800. However, I only eat the hat if we're above the 7900 level (still getting the last one out of my teeth) Good luck all Stephen