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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Robert Scott who wrote (27630)1/15/2002 8:11:36 AM
From: Vitas  Read Replies (2) of 52237
 
here are two charts of discount rate cuts 1929 through 1932 and 1934:

geocities.com

The cuts then were ongoing and relentless. The longest interim between cuts until May 1931 was a half year, not over a year.

There was no net positive response from the markets.

Today there has been no net positive response from the markets after a long string of Fed rate cuts, the first time the markets have ignored rate cuts since the early 30's.

The clear warning is there that this is not business as usual and that blindly relying on stimulative monetary policy may be a fool's game.

Are you employing any objective indicators to monitor whether we may be slipping into that kind of environment?

What change would it take in those indicators to reverse your current position?

What is it about the situation, as you define it, that precludes a retest of the bottom more than two months after it has occurred?
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