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Strategies & Market Trends : Roger's 1998 Short Picks
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To: Risky Business who wrote (14084)9/25/1998 3:57:00 PM
From: Hank  Read Replies (1) of 18691
 
I fail to understand why a rate cut would force a rally. Especially if the cut is for 50 basis points like everyone seems to expect. Such a cut would be a very negative indicator IMHO. The Fed would basically be saying, "We're screwed but hopefully these cuts will break our fall." However, the market never acts rationally most of the time, so a rally wouldn't be a surprise. Time to get ready to write some covered calls I think.
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