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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?


To: SE who wrote (40085)12/14/1999 1:21:00 PM
From: Chip McVickar  Read Replies (1) | Respond to of 44573
 
>>Liquidity has kept the markets going....<<

Large bond traders have stopped buying ahead of Y2K, thus the rates are heading up due to lack of purchasing.

All this new money will be repo in early January which will dry up liquidity again and this may cause the bonds to rise. Then to sell off as big buyers begin to return looking happily at higher rates.

Very Complicated.

After this, if Greenspan needs to lower Rates to ward off International monetary complications there would be failing prices.
Equities may sell off in response to **Any** scare that seems threatening to economic strength.

But.....What we see today and later on in Dec maybe a 'sell the rumor buy the News' and the market rockets up after the lights **don't go out** in January.

Very complicated.

Chip