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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Mike Learner who wrote (2151)	10/27/1998 9:10:00 PM
From: Caroline	Read Replies (1) \| Respond to of 39683

The market is bigger than all of us, even Greenspan. Yes the move was in response to Long Term's positions. But the last 1,000 points were not just a response to the bait. Short-term reactions to stimuli can certainly be considered manipulation. At 1.5 billion shares traded per day on just the Nasdaq and NYSE alone, the stimulus retreats and the natural direction re-affirms itself. Rubin & the Bank of NY bought a few billion yen last summer. And it made a difference in the currency prices. But only for a few days. A couple of theories for you. First theory. The interest rate cut was no bear trap. It happened when it did because that's when it happened. Any day that week would have been bad for bears. And it would have just gotten worse. There was no such thing as a good time to announce a rate cut and not kill half the bears. Second theory. The markets are like our universe. So massive in comparison to ourselves that they dwarf us, makes us insignificant. Many reasonable, scientific people interpret the vast cohesiveness of galaxies upon galaxies to be proof of the existence of God. All this couldn't work if it were randomly thrown together, there must be someone in charge. Similarly, the markets are so much bigger than us that we must anthropomorphize them into some recognizable shape. That shape is somewhat parental, in charge, and has a purpose. I propose to you that this is a trick of the human mind as it attempts to make sense of something so big that it is otherwise impossible to understand. Warm regards, Caroline