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Politics : Idea Of The Day

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To: Peace who wrote (32936)9/11/2000 4:55:17 AM
From: IQBAL LATIF   of 50167
 
Excerpts from Walker newsletter today inverted yield curve and the calender...<<Another thing that has us feeling bearish is the calendar. September
is generally not a very friendly month for the stock market. The
market defied the odds by having a very strong August...which is
another month that is usually pretty bear-friendly. Could September
make it two months in a row that the stock market beats the seasonal
odds? With those chart patterns and weak market internals, we doubt
it.

Finally, there is still that inverted yield curve that we have been
writing about for a while. Briefly, an inverted yield curve is when
shorter term rates are higher than longer term rates. This is
counter-intuitive, since investors usually demand higher rates for
tying their money up for a longer term. Inverted yield curves are
generally considered harbingers of coming economic recessions, and
they are considered a bad omen for the stock market.

So we have a confluence of factors that have us looking for lower
prices in the coming weeks. How deep this pullback will be remains
to be seen. In the last few years, these fall pullbacks have been
very sharp, but they have also been over quickly. As this selloff
develops we should get a feel for just how much damage there will
be. Until then, buckle your seatbelts...>>
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