ML is becoming bullish...news!!!!
by: hdcafe 05/16/01 01:41 pm EDT
Msg: 235418 of 235418
"1:05PM: Notably, the Dow is making new intraday highs with the index trading over 11,000. The
current move is taking on the look of a decisive break. Total volume traded is beginning to pick up
and now looks like a moderate trading day -- by very recent standards the volume could be
considered heavy. Merrill Lynch is out with a call that's somewhat interesting this afternoon. The
firm's position is the Fed has pushed the Dow over 11,000 and is supporting capital spending via the
equity market and the credit market (corporate bonds). Merrill is turning very bearish on the U.S.
Treasury market but is equally as positive on European bonds. In Merrill's view, the Fed wants
higher equity prices and is willing to sacrifice Treasury yields to restore capital spending. In other
words, rising stocks means rising yields. XOI +0.7%, S&P Midcap 400 +0.8%, DJTA +0.5%,
DJUA +0.2%, Nasdaq 100 +2.0%, SOX +1.9%, Russell 2000 +0.6%, NYSE Adv/Dec
1801/1151, Nasdaq Adv/Dec 1867/1673 |
