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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Gary E who wrote (15680)2/17/1999 11:18:00 AM
From: SE  Read Replies (1) of 44573
 
Not 100% certain, but there does seem to be some correlation between the FED adding reserves and the market going up and the FED draining reserves and the market going lower. James Hopkins thinks it has something to do with the cost of borrowing and leveraging the borrowed capital into index futures. A small change in the FED funds rate increases the cost of capital and with the small margins used to trade the index futures a small change in interest rate dramatically changes the carrying costs. Whether that works or not I don't know...but there usually is a correlation to the market.

I am less of a bullish stance now than I was prior to reading that.

If Qcharts gets back up I will still look to go long, if QCharts remains down...I will stay flat.

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