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.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (40197)	2/15/1999 9:05:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

Sarmad-- what it means is that the odds have shifted against you being short -- not to say that this will help AMZN, but this is definitely an attempt to reduce the impact of the BOJ not playing ball on buying in bonds. If you notice, it is the MOF, not the Bank of Japan taking this action. So I think it is, as I said, damage control, and not a reversal of the BOJ position. The March year end is a factor for other reasons -- not the most important factor. All in all, this does more to muddy the water than to create a clear picture -- bottom line: cover more aggressively to reduce your exposure. For what its worth, the market could now go either way. It is less of a 'sure thing'. There were other reasons for a sharp pullback -- they are still there -- but this was the 200 pound straw on the camels back -- hate to see it being partly removed.

To: Sarmad Y. Hermiz who wrote (40197)	2/15/1999 9:18:00 PM
From: GST	Respond to of 164684

Sarmad--<Does that mean the US bull market will march to higher levels ?> No. The yen is moving up, but after a short covering rally on the yen we will have to see if this has legs. It means the bull market in bonds might be back -- but remember, bonds and stocks do not always move together. As I said last week, this week the watchword will be asset reallocation -- stocks to bonds. It is coming faster and harder than it would have otherwise be happening. The knee jerk reaction will be a pop in both stocks and bonds. But this is still likely to be a rally to sell.