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Politics : Formerly About Applied Materials
AMAT 322.51+6.1%Feb 6 9:30 AM EST

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To: StanX Long who wrote (62325)3/25/2002 1:53:03 AM
From: StanX Long  Read Replies (1) of 70976
 
The news is good, but how do I react?
Commentary: Candlestick guru sees risk to the downside

By Tomi Kilgore, CBS.MarketWatch.com
Last Update: 12:56 AM ET March 25, 2002

marketwatch.com


NEW YORK (CBS.MW) -- How markets react to news can be more important than the news itself.

When stocks are trending up, all news is good. When stocks are sagging, the opposite is true. But what about when the market is ranging?

The "news" is now pretty certain -- the economy is expanding. The Federal Reserve even said that economic risks are now balanced. But a recent stalling in the major market indexes has raised questions about how to react to that scenario.

I thought the market's action last Thursday may have finally provided a clue to direction market psychology was leaning.

On Thursday, strong unemployment claims data and core consumer inflation figures that were above expectations sparked fears that the economy was stronger than expected, and that the Fed would have to act quicker and more aggressively than previously anticipated (see story). Stocks fell.
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