Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: HairBall who wrote (24553)	9/2/1999 12:22:00 PM
From: Merritt	Read Replies (1) \| Respond to of 99985

LG, << Does anyone really believe that the 30-Bond rates have been going up because the Fed has been tightening?>> FWIW, IMHO, the bonds are going up because of Japanese repatriation of monies. I first felt this when the Latin America currency fuss occurred last week. There was a "flight to quality" from the Brazil, Equador, and Argentine currencies to the US$. The dollar was strong against all currencies, except the yen. Later comments from Japanese economists about no Japanese intervention to support the dollar until the 107 level, acted to confirm this - at least in my mind.<g>

To: HairBall who wrote (24553)	9/2/1999 12:35:00 PM
From: Berney	Respond to of 99985

LG and ALL, OEX is painting an interesting picture of the situation. The 60-min chart has a brutal down trend line, which is dropping fast, and will shortly be at the horizontal resistance at about 692. Moreover, it sure looks like a nasty pennant with the base at about 685. Nothing to say it will break down, but with a high on the pennant at about 725, a failure would project to about 645. Unforunately, I don't like my position as I'm trapped in the Softer Side of S. Nevertheless, if we break the pennant, I will get a Class Bye-Bye. FWIW Berney

To: HairBall who wrote (24553)	9/2/1999 1:15:00 PM
From: Haim R. Branisteanu	Respond to of 99985

Well, LG one should just read my Chicken page and he can be prepared and I wrote this in JUNE, 1999<G> U.S. Consumer Prices were reported as Unchanged in May; - We do not belive the report!! see last mnth report Consumer prices were unchanged in May while gains in industrial production and housing starts show the U.S. economy isn't slowing, presenting a quandary for a Federal Reserve on the verge of raising interest rates. One clear evidence is in this report from Bloomberg which quotes " Sometimes, though, the government calculations don't measure up. The government's inflation figures suggest Siegal's monthly rent should've risen 2.1 percent to $817. Instead, finding a comparable place in Washington's hot apartment market meant Siegal had to pay an extra $225 per month, a 28 percent increase. Siegal's experience highlights a divide between what the government says about U.S. housing costs and the sticker shock buyers and renters experience when they look for a new place to live. According to the Bureau of Labor Statistics,housing costs through the 12 months that ended in May rose 2.1 percent. Yet industry surveys indicate the figure is atleast double that. In some areas, it's five times as high." - which is reflected in the FED Beige Book released on June 16,1999 bway.net Oh well, BWDIK Haim BTW - now I am expecting a slowdown in the inflation rate mostly related to the weakness of the stockmarket. Based on previous experience it will take at least 2 months for the market to recognize this.

To: HairBall who wrote (24553)	9/2/1999 1:42:00 PM
From: Matthew L. Jones	Read Replies (1) \| Respond to of 99985

LG, The selling of securities is how the government takes liquidity out of the market. It is another way of tightening. When the government buys securities it is doing it by "printing" more money, which in turn adds to the money supply. I know it sounds bassakwards but if you think about it, that is what happens. So, the buying of securities is another way of tightening (although less transparent) by reducing money supply and trying to ward of inflation (which doesn't exist). BTW, where did you find out that they are selling securities and reducing the money supply? Matt