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To: yard_man who wrote (8878)	10/17/1998 10:43:00 PM
From: Moominoid	Respond to of 86076

Market Edge upgrade SPY (and therefore SPX/INX I assume): 207.53.33.62 David

To: yard_man who wrote (8878)	10/18/1998 10:00:00 AM
From: Joseph G.	Read Replies (1) \| Respond to of 86076

I'm getting to believe we just saw PPT in action last Thu, or, one can say, there was likely an intervention in Spoos on top of Easy Al easing and the normal "open market operations". If one looks carefully, Al's announcement was made at 3:06pm, and there was no significant market reaction for a while, till 3:15pm when Spoos shot up by 50 points, on PREM of 50+ in matter on 1 to 2 minutes. Several strange things happened: (i) No response for several minutes, then overwhelming response in seconds - why "monkey buy" waited to hit the buy button so long (every time FOMC announces something response is within seconds), and then all of them decided to hit the button simulatneously? Or, PPT hit the button after not seeing "positive" response, and afraid / mindful of the prior selloff on similar occasion on Sept 29? (ii) Why institutions, traders, shorts - alternative buyers - did not buy stocks, but only Spoos? Also note that nearly all stocks outside of S&P500 did not participate in the early runup. (iii) Why arbitrage did not kick in, and / or was not sufficient to keep PREM under say 20, as was nearly always the case even in fast recent markets. Prem = 50+ means arbitrageurs can make ~100% nearly riskless profit on their money in minutes. Takes Buffet or Soros 3 to 5 good years of work, and taking risk on to make such profits.