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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (4526)	1/22/1999 12:37:00 PM
From: NickSE	Read Replies (2) \| Respond to of 99985

James, There are rumors that the Fed told the online brokers to clean up their act otherwise they would do it for them. This is probably a better reason for this margin tightening and not these hyper margin players as mentioned in MSNBS. What bothers me is how this whole thing came about without warning, screwing the small guy who doesn't have a clue. Re: Cash levels. No clue as to whether it's accurate. I just know that if there is a significant decline we might find a lack of buying to rescue her. I don't doubt it's reliable, but the timing on it means a lot. I went to msnbc yesterday and saw a good article about day trading war rooms, and 10 to 1 leverage used by day traders. Well that's been going on, but msnbc released it with timing that suggested that is what caused the internuts recent fall, ( day traders caused it) I find that sort of silly and them way off base, like trying to divert attention away from the real cause. The brokers and exchanges just up the margin requirements of most all internet stocks with out warning, is what caused it. Regards, Nick