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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (50265)	3/7/1999 8:56:00 AM
From: J. P.	Respond to of 132070

It will be interesting to see if the Fed stops adding liquidity. I've been following this for a while now, and in a very unscientific way have correlated overnight adding with rallies. Just as I've observed draining tends to mute rallies and cause selloffs. I won't even pretend to understand the mechanics of this. It's been one of my conspiricy theories that the Fed has been propping up the market with this liquidity, and when the spigot is shut off, gravity takes us back to less hysterical valuations. If they actually start draining on a regular basis, I think that giant sucking sound will be the rapid reduction in paper profits in the equity markets, and the panic selling which follows will accelerate the process. As a side note: Although the topping action of the Nasdaq has surprised me, I can't have conviction in the bullish arguments. I can find no evidence of the Nasdaq ever rising 15-20% over it's 200 day moving average and not correcting back to the 200 DMA. So I'm scratching my head here, but adding puts as we go up, because as an options position trader with a three month view, it looks to me that's where the biggest bags of cash are to be made...

To: Earlie who wrote (50265)	3/7/1999 9:40:00 AM
From: wlheatmoon	Respond to of 132070

Earlie, The dynamic duo of Big Al and Tonto Roberto will probably want to prop this market up long enough for Goldman and Brothers to get a bit wealthier before the bottom is pulled out. I'd think they look out for each other pretty good. After all, what are friends for, eh? Only wish I'd gone to the right school so that I'd be coddled so warmly by these fuzzy fellows. -g- On the other hand, the rest of the big boys on Wall Street surely have had enough warning and the smart ones have been liquidating. Again, as you've said, it's not what is said, it is what is done that is important. mike