it would be unusual to get a pm selloff prior to positive fed meeting, i think the greater risk is a selloff if fed doesnt exceed expectations, at this point we need a surprise on the upside, any rate cut would be a surprise, i personally see a loosening bias with language that the signs of recession are increasing, and greenspan could loosen rates at any time as he see fits (he doesnt have to wait till next fed meeing) that would be the best i could hope for at this time, we need something major to bring the sideline cash in and greenspan is the only bullet the bulls have left to fire, this market cant move until we see the other side of this slowdown, on the negative side, there appears to be some concern over waiting on csco,ibm warnings, and there should be more warnings in january, so if we do get a greenspan slingshot effect, we may very well get another round of slow steady erosion that takes us back down like the last one from dec 4th
bottom line
we are still in profit often mode |
