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To: mmeggs who wrote (16255)	10/9/1998 6:28:00 PM
From: straight life	Respond to of 152472

The action looked kind of poor, though the volume was respectable

To: mmeggs who wrote (16255)	10/9/1998 6:50:00 PM
From: dougjn	Read Replies (1) \| Respond to of 152472

I think the rally was for four reasons. 1) Stocks quite oversold (i.e., technical); 2) rumors circulated (by badly hurting financial institutions) that the Fed might lower rates before it's next meeting in mid November; 3) the increase in the interest rate of the long bond took some pressure off of hedge funds, banks and brokers (the later two of which rose strongly today as a result); and 4) earnings reports are upon us, some of which will be good. I think the last is the only one that has any lasting power, and really not all that much. Because forward guidance isn't likely to be too robust, overall. Still, it might continue for a few more days next week. If so, a good lightening up opportunity, in my view. We're gonna have a really bad break below 7500 Dow before this is intermediate term over, in my view. Probably this month. A great buying opportunity, if that happens. Of course I could be wrong. Doug Doug

To: mmeggs who wrote (16255)	10/10/1998 12:51:00 AM
From: Jon Koplik	Read Replies (1) \| Respond to of 152472

mmeggs - regarding ... So, anybody out there think that today's rally is anything more than a head fake? Does anyone (other than me) need to have the term "head fake" defined? (When I was trying to dissuade people from writing "covered" call options, I thought about comparing the illogic of the strategy to the way that perpetual motion machines extract "free" energy out of systems, thereby violating one of those fundamental "Laws of Thermodynamics;" but, I figured I didn't want to get started with weird terminology). Maybe if I understand what a "head fake" is, I'll be able to explain Eurodollar futures trading more easily (?) Jon.