MDA - Market Direction Analysis Message Board

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.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 683.47

+0.6%

Nov 28 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: gfs_1999 who wrote (77032)	5/14/2001 7:50:19 PM
From: t2	Read Replies (1) of 99985

"Betting Against the Hedge Funds" This is going to be the battle tomorrow afternoon. I just agree with Cramer that the hedge funds were really covering to the degree he seems to suggest and that is the case for a rally on the cut. thestreet.com Betting Against the Hedge Funds By James J. Cramer 5/14/01 6:55 PM ET It's going to be tough to please the hedge funds here. As much as the economy needs to see a half point, because the consumer and the corporate buyers need to spend more and because earnings are going to fall short again without it, the hedge funds want blood here. All day today I saw hedge funds covering shorts and getting ready to put them out all over again because they are so certain that the second quarter is shaping up poorly. Even if we get a 50-basis-point cut and a good statement from the Fed, I think these hedge funds will want to press the bear bet. Anything less than that, and the market could get hit pretty hard. But if we get 50 basis points and a good statement, I really want to take the other side of the hedgies and do some buying if they knock it down. In that situation, rates will keep coming down, earnings will eventually get better and cash will be trash, instead of king as it still seems to be these days. Just to review: Why do we need the cuts? Corporations aren't spending; you saw that slow industrial production number today. Individuals are going to get skittish about spending with another weak employment number coming up. Earnings are anemic and may not be bottoming. Until all three of these conditions change, we want cuts and we want them fast and furious.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next