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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (638)	8/31/1999 2:08:00 PM
From: J.T.	Read Replies (1) \| Respond to of 19219

heinz, great observation. You can not have the stock market co-exist at these lofty price levels on deteriorating technicals and prolonged cancerous breadth statistics in the face of the twin bash brothers of a lower dollar and higher bond yields. EQUITIES will give way to gravity. But as you know, we have been down this road before. The difference is Jackson Hole and Mr. G finally admitting to the accounting gimmicks and that maybe things don't really appear as they really are. Man since the beginning of time has said this time it is different... Is this really a new era? Or do the bulls want it to be so? Best regards, J.T.

To: pater tenebrarum who wrote (638)	8/31/1999 5:48:00 PM
From: Les H	Respond to of 19219

Yen set to steam ahead in absence of G7 action by Swaha Pattanaik Tuesday, Aug 31, 1999 11:29 am LONDON, Aug 31 (Reuters) - The yen is likely to trample over other major currencies unless officials from the Group of Seven industrial nations surprise the markets with measures to combat bullishness about the Japanese unit, analysts said. German Deputy Finance Minister Caio Koch-Weser said on Tuesday he and his counterparts from Britain, Canada, France, Italy, Japan and the United States had discussed the yen on the second day of their two-day meeting in Berlin. However, analysts said the foreign exchanges had so far seen nothing to curb the strength of the yen, which hit seven month peaks against the dollar and all-time highs against the euro even as the G7 deputies met. Nor did they expect the meeting to produce anything to stop the yen's advance and the damage that could inflict on Japanese exporters. ``The market is not exactly quaking with fear at the moment despite the G7 deputies' meeting,' said Paul Lambert, senior currency strategist at Citibank in London. ``Not all of the G7 authorities believe intervention works, particularly given that past history suggests intervention does not succeed when monetary policy is not going in the same direction.' Lambert said the dollar therefore risked extending its slide to 105 yen in the next two weeks, about four yen below Tuesday's troughs. The yen has already risen over 14 percent against the dollar and 16 percent against the euro in the past three months. No formal statement is expected from the G7 deputies meeting, which is preparing the ground for a G7 finance ministers' meeting in September on the sidelines of an International Monetary Fund/World Bank gathering. At that time, the G7 will have to go beyond its well-worn formula -- calling for exchange rates to remain in line with fundamentals -- if it is to turn the tide against the yen, analysts said. ``What people want to see is action,' said Martin Squires, head of research at Rudolf Wolff & Co in London. ``Japan has tried intervening on several occasions and this has done nothing to stem yen strength, so it is really going to need some sort of concerted policy shift.' The Bank of Japan has intervened at least seven times since June 10, including once via the European Central Bank and once through the Federal Reserve. Still, the yen has strengthened nine percent against the dollar since it began its efforts. The failure of solo Japanese intervention to halt the yen's advance makes it even more imperative that the G7 presents a coordinated front against yen bulls, analysts said. This view was reinforced after a senior member of Japan's ruling Liberal Democratic Party said he believed his country's representative at the G7 deputies meeting would be seeking support for joint U.S.-Japanese intervention. However, the comments gave the dollar only fleeting support against the yen, with dealers quick to dismiss talk that intervention would be launched around 105 yen. While they remained wary of intervention, dealers said they would continue to target lower levels until they saw coordinated intervention. ``If they flagged 105 as an intervention level, what they would effectively be saying is, 'Go short now lads and when it's four big figures lower we will help you buy it back,' said a dealer at a European bank in London. ``Unfortunately life is just not that simple. But it does look like the market is gunning for the year's lows around 108.20.' >>>Looks like Japan is alone now.