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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (16652)	6/10/1999 10:04:00 AM
From: Step1	Read Replies (1) \| Respond to of 99985

Heinz, rate cut in China looks like a Trojan horse... Events in Asia right now may be even more determining ultimately as to the fate of the US market, more so than the direction of sub indexes (internet) although I thought you hit the nail right on the head when (could be a hundred posts ago) you described the symbolism of the most manic stocks of the mania (cant find the post now). China: China cutting the rates by .75 shows what kind of titanic problems they are trying to deal with, not a good omen in my view. Japan: I may have trouble taking my bear glasses off, but at least the bearish view in Japan (where I live) would be that the growth in their GDP numbers was attained through massive (and often wasteful) public spending while in the own words of the government there may be no noticeable proof that the private sector has halted its slide or that the economy can return to growth in the future unless this money continues to flow into the system... The patient is not dead, but we can't unplug him yet... No doubt we may see some very volatile periods in stocks, bonds, and forex rates as they try to adjust to "climatic changes"... This may not be the thread to go further into this discussion, but why do you think China lowering the rates is a prelude to devaluating its currency? How would that help? Yours Sincerely, Stephan Gilbert