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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (45068)12/13/1999 10:06:00 PM
From: Lee Lichterman III  Read Replies (1) of 94695
 
What do you think of the affect of the FOMC meeting. To me this is the wild card in the outlook.

I personally think he will tighten the bias as a minimum and thought that the market would rally in relief of no raise. I doubt anyone really expects a raise but with the gains recently, the big money must be a bit twitchy. Due to the recent big gains especially in the NASDAQ though, I think the Fed needs to try and talk things down and since no one listens anymore, a tightening bias would be the way to do it.

I have talked with a few others regarding market reaction to a tightening bias and not many agree with me that as long as there is no raise, the market will rally. Most think a tightening bias will be enough to spark a sharp rapid drop that can be bought till mid to late January.

Comments???

Good Luck,

Lee
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