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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (30437)	1/13/2000 10:54:00 PM
From: fuzzymath	Respond to of 50167

I would think financials, banks, utilities, all rate-sensitive stocks will react negatively to announced Fed increases. But, also, I'd think they will already have the increases figured in more than other sectors, because they track downward as bonds decline anyway. The Fed is reacting to, not leading, the rate changes. Volatility has shot up, and very suddenly. Just like last January, we're moving from a stable rise into choppy volatility, which is a very difficult environment for short term trading. My last trade (FFIDX from Friday through this past Tuesday) was successful (3.4% gain), but today I had to buy back in at a higher price than what I sold at on Tuesday. It's a tough environment indeed. If the volatility and choppiness get much worse, all my models will say it's time to sit on the sidelines in cash, and wait out the storm. Kevin