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

To: TimbaBear who wrote (28911)	10/10/1999 5:28:00 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 99985

TB, obviously, if you stay nimble as you say and are not simply buying and holding because WS tells you so, you are not in the category of people i criticized with my remarks... note that the market, at the beginning of a cyclical upturn in inflation often manages to ignore higher rates for some time and focus on the increasing pricing power of commodity oriented and industrial companies as well as chasing the tech stocks higher for the reasons i mentioned in a previous post. but ultimately, interest rates win out...and my biggest problem with the market is the astounding complacency that is displayed toward the interest rate issue. it seems nobody believes that rates can go even higher, and yet, such widely held beliefs are often not accommodated by the market. like every other market, the credit markets often overshoot,and the failing rally in bonds on Friday was not very reassuring imo. note that the bond market should have reacted to the rising dollar and a sharp fall in commodity prices, but it closed lower once again. i repeat that the danger of a shift of assets from stocks to bonds remains high, and such a shift could be swift and violent when it occurs. good idea keeping stops in place... regards, hb