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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (51071)	7/9/1999 10:31:00 AM
From: Defrocked	Respond to of 86076

Yesterday was pretty interesting. Merrill, SollySB and another house each sold about a thousand lots on the opening using 500 lot offers. Whether this was a hedge for their own uncircled inventory or a hedge fund coming through three firms simultaneously we may never know. I think however it was the former as the hedges were probably covered during the subsequent sale and rally. Next week's inflation news will probably be benign again so a rally into those Wed/Thur. numbers by the bulls is quite possible in the short term. Indus.Prod. on Friday will help refocus on Q2 GDP due to be released two weeks later on the 7/29 along with the ECI. ChicagoNAPM is also due 7/30. These later numbers will remain strong and likely above the Fed's and the market's comfort zone. Right now we are trading at the top end of the trading range since June 1, brushing the 50DMA from below, and on the upper tail of the trading envelope so we could go lower. I'm hoping, however, that the bullish reception the recent corporate supply received creates a retest of the 117 handle and above, around the 5.9% area, based on overreaction to low past inflation rates next week. That rally should be sold IMHO. We may not get there as I see we couldn't hold today's highs. I'm going to wait till next week regardless; it bothers me that we punched through the high established on the 6/30 Fed hike spike. To me it implies there are still bulls who like sub-6% yields and I'd like the market to reel them in for a little longer. FWIW, I'm only guessing.