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

To: Trey McAtee who wrote (17247)	6/14/1999 1:49:00 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 99985

Trey, the Fed didn't raise rates - the market did. i repeat that i don't see much of a case for higher rates either, but they go higher anyway. whether inflationary pressures are real or imagined doesn't really matter that much. something is driving rates up and stock prices down. inflation fears are served up as the explanation because some kind of rationale has to be supplied. the truth is, as you have said yourself, that rationality has very little to do with it. technical analysis is just a way of interpreting the psychological meaning of past price movements to project a possible future. from that point of view, we shouldn't even be concerned with whether there is a fundamental reason for rates to go up or not. what should concern us however, is the breaching of 'psychologically important'(there you have it) support levels. so never mind if the nervousness is justified, it is there. regards, hb