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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.21-1.1%4:00 PM EST

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To: pater tenebrarum who wrote (54106)6/14/2000 6:37:00 PM
From: Joan Osland Graffius  Read Replies (3) of 99985
 
heinz,

I am having a problem resolving in my mind some of the things that should be going on. Japan should be doing everything in its power to keep the USD high. I suspect they need the US consumer to continue to dig themselves out of this hole they are in. If the rate increase by the Euro gods has a slow down effect in Europe, they should be trying to prop up the USD to keep the US consumer buying to insure a recession in the Euro zone does not occur. If all these central bankers have the printing presses going full steam ahead they should negate the effects across boundaries. So the end result should be the USD keeping its strength, and the US citizen continue to spend-spend-spend.

Now the effect of oil on the economy should act like a tax and cause a shift in spending. The problem for the markets is that the oil companies increase in stock prices probably will not overtake the high prices of the tech stocks.

What am I missing?

Joan
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