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CNBC kept saying this, the Fed might move before the weekend and they were
getting their info from?
You know what their saying it again because of a report we had and I forget
which one the PPI I think.
Robert
Massey wrote:
>Phil wrote:
>"Nobody know the Fed would move"
>
>Actually, I can't help but think that some people did know -- at least a
>couple days in front. Traders like Soros, and some large institutional
>traders who established large S+P positions a couple days earlier. There
>was a post by someone on this list stating that the squwak box reported
>several large traders taking positions around 940-960. He went on to say
>that at least 1 of these large traders did not have "a worried look on his
>face."
>
>To think that this kind of information stays inside the circle of policy
>makers is nieve. How could when so much money is at stake? A leak here a
>leak there and a kick back is all it would take. Since when are policy
>makers immune from the temptation to make large sums of easy money?
>
>How coincidental.
>
>For the record, whoever wrote this thanks. I read this and promptly bought
>MSFT calls. This is a great list!
>
>Brian.
>
>-----Original Message-----
>From: Phil Lane [mailto:logical@xxxxxxxxxxxxx]
>Sent: Saturday, October 17, 1998 9:44 AM
>To: omega-list@xxxxxxxxxx
>Subject: Re: FED cut forewarning
>
>>Date: Sat, 17 Oct 1998 00:01:13 -0700
>>From: mr_bond@xxxxxx
>>To: omega-list@xxxxxxxxxx
>>Subject: Re: FED cut forewarning
>>Message-ID: <362840B9.5EE7B4D6@xxxxxx>
>>Content-Type: text/plain; charset=us-ascii
>>Content-Transfer-Encoding: 7bit
>>
>>What I don't get is why the fed would intentionally wreak havoc with the
>>financial markets like that. I have a rule that I never have a trade on
>>in front of an important Fed announcement, but there is just no way to
>>prepare for that kind of carnage. Greenspan had to know that this would
>>cause some serious margin calls, perhaps bankruptcies, for potentially
>>50% of the traders with positions in the futures markets. I hope he has
>>a clear concience about that.
>
>I've never seen it pay to worry about the reasons why things happen. Nobody
>know the Fed would move, but there was ample evidence that the market could
>rally. The market predicts it's own future!
>
>In the book "How to Make Money in Stocks" by William O'Neil, on page 59, it
>describes how the market will "follow-through" to the upside after making a
>low (if it's really going to go up that is). It's extremely specific,
>easily computerized. As an added bonus, it really works. The real key is
>the volume action. It works best on the Nasdaq. And it happened on 10/14,
>the day before the blowout.
>
>Any trader should know that the market can move suddenly and powerfully,
>who cares why. People should expect the unexpected, and protect themselves
>accordingly. If the shorts had some kind of protective stops on the books
>they could have survived.
>
>
>
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