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In a message dated 6/23/98 4:06:27 PM Eastern Daylight Time,
bfulks@xxxxxxxxxxxx writes:
<<
My theory is that the big money (and probably the government) is trying to
keep the S&P cash index in a trendless narrow trading range of 1075 to 1135
for a while. >>
Stop And THINK: The S& P has index trading, a derivative. If "gamblers"
want to play "the index," those that create the derivative contract take
offsetting and equal positions in the underlying "actual stocks" thereby
limiting their risk only to "the spread"
The demand then for the underlying stock, might have nothing to do with
business prospects, but for the need to create derivatives. If this be the
case, the day "the gamblers" take a big hit, pack their bags and go home, the
derivative demand for the underlying shares, also so dries up. It is at this
point, the shares "fall of their own weight."
VOILA! ........GerryB/jer3:33/eccl 1:9
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