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

To: HairBall who wrote (28318)	10/4/1999 8:56:00 AM
From: Walt Deemer	Read Replies (2) \| Respond to of 99985

I wonder whether the stock market has worked itself into a "no-win" situation regarding tomorrow's FOMC meeting. If the Fed RAISES rates, the market is likely to react negatively, since the consensus doesn't appear to be expecting one here. (The John Berry article in Sunday's Washington Post that was recently cited on this thread, which alerted us not to expect a rate increase, was an excellent find; Berry is "wired in" to the Fed like nobody else.) But if the Fed DOESN'T raise rates, the dollar will probably decline further vs. the ECU (which hit an eight-week high on Friday). Since the strength in the ECU was arguably the single most important force behind the market's mid-July-August selloff, a "no rate increase" decision is also likely to end up leading to a negative reaction from the stock market. Thoughts, anyone?