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To: stockman_scott who wrote (12427)	8/7/1999 8:55:00 PM
From: Jenne	Read Replies (2) \| Respond to of 19700

''Typically, it takes three rate increases to do the job, which has led to the old Wall Street rule, 'Three steps and a tumble,''' he said. This would mean that stocks will get hit by three consecutive rate increases before heading sharply lower. Why does it take three interest-rate moves to jar the market? ''When the bull market momentum builds up, people become so positive, it's hard to kill their enthusiasm,'' he said. ''Investors get the feeling that nothing can hurt them and the market is unstoppable.'' An overly positive market mentality may now be the thing that is supporting the market. ''Investors view any market pullback as a buying opportunity, even after the Fed has raised rates,'' Hays said. ''Now, they are waiting for the second Fed move, which will probably cause a little selling reaction before it comes back up again.'' The third rate increase may send a loud wake-up call for Wall Street and there will be some ''serious selling,'' he said. dailynews.yahoo.com