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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 659.00

+1.0%

Nov 21 4:00 PM EST

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To: HairBall who wrote (41407)	2/25/2000 10:34:00 PM
From: Doppler	Read Replies (2) of 99985

I'll take a swipe at answering that. I usually hang out on the PnF thread here on SI, and the MurphyMorris.com forum. I have posted a few things recently on the John P's Market Laboratory Thread concerning my take on the state of the markets from an economic/valuation/fundamental standpoint, with some generalized TA thrown in like trend lines, etc. As I said over there today, the TA I have seen from these 2 threads is, for the most part, as good as any I have seen. Now for the answer. Interest rates might not affect the tech stocks as much because of other available avenues of debt financing (Venture Capital etc) but in the long run higher rates will slow the economy and when profits subsequently slip the valuations will tumble as well. But, that isn't the real way they should be controlling things. It's simple...MARGIN....The Fed controls margin requirements, but AG says it won't matter. It will. Commodity exchanges do it all the time. During volatile periods they raise margin rates to cool speculation. A simple change from 50% to 75% would put a quick end to the mania without harming the "Real" stocks. JMHO, BWDIK. Jeff

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