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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: J.T. who wrote (1681)12/2/1999 3:25:00 PM
From: pater tenebrarum  Read Replies (1) of 19219
 
J.T., i think it's the usual "bond market is closed" ramp. if it is insider knowledge, i wouldn't be surprised. however, this market is so manic, that i suspect that when it breaks it will be extremely ugly. imo there are two possibilities longer term. either Y2K is a serious affair, in which case the stock market will tank while the bond soars, or it isn't, in which case the Fed will have to remove much of the excess liquidity it has provided, in which case the bond will still be the better place to be.
my favorite scenario however is that we will enter into a period of inflation as the liquidity splurge feeds through to the real world.

btw, note that the bond refused to party today...it closed near the day's lows. the economy is clearly overheating, it has basically become a bubble as well. note today's housing data...incredible. btw, the Fed governor Meyer has given the market fair warning i believe. i don't think the Fed is finished raising rates.

regards,

hb
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