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To: billwot who wrote (23767)	6/11/1999 6:03:00 AM
From: William Hunt	Respond to of 27012

billwot ---sorry it took me so long to answer --- looks like we have will have a stronger feel this morning with the wholesale PPI ---estimates for .2% . Another factor playing into stock prices is First Call is looking for a 10.5 % increase in year over year earnings for this qtr . I know that both the market has price into the bond market a .5 increase in rates . The most the FED will do in JUNE is a qtr point .The market will follow the wholesale PPI and the CPI numbers up and down then we will have a summer rally due to the strong earnings for the second qtr . Just my 2 cents ---have a great day BEST WISHES BILL

To: billwot who wrote (23767)	6/11/1999 6:26:00 AM
From: William Hunt	Read Replies (1) \| Respond to of 27012

billwot ---followup from briefing.com ---Up, down, up, down... The roller coaster ride in the tech sector continued, as rate fears resurfaced when long-bond yield climbed to 6.07%... Mr. Greenspan, if you're listening, tighten already!.. At this point, .25 pt rate hike would do more good than harm in that it would ease concerns among bond bears that Fed not being diligent enough in combating inflation... As for stocks, the market has already priced in a rate hike of at least 1/4 pt. so stocks likely to rally on the fact... Retail sales and PPI data due out this morning.. Also the following ----Cisco Systems (CSCO 110 7/16 -3 5/16) continued to mark time... Divergence between long-term moving averages remains abnormally wide but nowhere near as extreme as it was in January... May continue to move sideways (100-120) for next month or so, but as long as support in the 100-98 area holds, stock should stage powerful rally over next 6-9 months. BEST WISHES BILL

To: billwot who wrote (23767)	6/12/1999 5:40:00 PM
From: William Hunt	Read Replies (1) \| Respond to of 27012

billwot---Some interesting tidbits about the market --- 1)since April 10th the thirty year treasury bonds has increase from 5.40 to 6.15 ---an increase of 75 basis points ---three FED rate increases 2) according to the CBOE the thirty year treasury bond is the most oversold since the early 1980's The worst case scenario is the FED raising .25 in June and possibly in August . This is base upon the CPI coming into too high Wednesday ---which I still have some strong doubts about . The best case is that the FED will take a wait and see attitude . I think we will fall in somewhere in between . One rate increase at the June meeting and wait and see . If this is the case then we are setting ourselves up for a nice summer rally . Bonds will retrench some with the stock market moving higher base upon First Call earnings estimates being 10 to 12 % higher for the second qtr . To give you a comparison to last year the second qtr earnings increase by 3 % . First Call is also looking at earnings to be up 15 % in the third qtr ( this is base upon the FED not taken away the punch bowl entirely ) Should be a positive period to make some money in the market ---Just my thoughts BEST WISHES BILL PS Where the heck is everybody ?