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Microcap & Penny Stocks : The Microcap Kitchen: Stocks 5¢ to $5

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From: GARY P GROBBEL9/19/2007 7:29:06 AM
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Regardless of what anybody says about the equity markets going up or down from here based on whatever criteria including anything from fundamentals to the position of the stars, moon and sun there are 2 incontrovertible facts that cannot be disputed as they have been proved out time and time again over the past decades-

-lower interest rates are bullish for equities-all equities

-the Fed never acts just once no matter which way they are going with rates (up or down)...they will cut again.

I stated earlier there would be a half point cut in the FF rate and that's what we got. The Fed will continue cutting IMO to at least 3.25 on FF...window discount rate is diff. They may skip a cut at a meeting or two but that is where we are headed. The 1/4 pt cuts will probably come at regularly sked meetings but it is also possible that depending on developments the cuts would be made w/o a sked meeting....and if a catastrophe occurs it could be another 1/2 pt cut.

It is possible that the trend reflected in improving advancers over decliners on the OTC BB, which culminated yest in the 1st positive comparison I have seen in months...more OTC BB issues advanced vs declines...could continue and even expand. Possible...

Also, tax loss selling may abate a bit ref certain issues as investors reconsider the potential for gains over the next few months.
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