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

To: KeepItSimple who wrote (43593)	3/19/2000 1:39:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

There was a big drop in new lows (-80) on the NYSE just before the ramp up day on Wednesday. It looked they were planning on marking up these stocks regardless of what happened. It seems it's usually the large banks and brokers getting bought up just before the event. This is the second time in three months I've observed this phenomena, probably occurs all the time. At least, this time a lot of smaller bank stocks also got bid up. As for the Fed, I expect they'll raise the discount rate at least 25 since the spread is at 50 basis points now.

To: KeepItSimple who wrote (43593)	3/19/2000 1:50:00 PM
From: KyrosL	Read Replies (1) \| Respond to of 99985

I agree that tightening margin requirements is likely. I strongly disagree that they will make the new margin requirements retroactive and force people to sell stock to meet them. Most probably they will not allow people to buy stock in their accounts until the new margin requirements are met.

To: KeepItSimple who wrote (43593)	3/19/2000 2:22:00 PM
From: Crimson Ghost	Respond to of 99985

I made the same argument in an earlier post. Tighter margin requirements will reduce the need for further interest rate hikes. That plus the prospect of lower oil prices is what set off the old economy rally.

To: KeepItSimple who wrote (43593)	3/19/2000 11:13:00 PM
From: Bridge Player	Read Replies (1) \| Respond to of 99985

<< THIS IS THE ONLY EXPLANATION FOR THE LARGEST POINT GAIN IN HISTORY LAST WEEK IN THE DOW. THE BIG MONEY FOLKS ALREADY KNOW WHAT IS GOING TO HAPPEN! >> Funny and ironic that someone who's handle is KeepItSimple has to come up with a conspiracy theory for a blue chip rally..<g> IMO the disparity between valuations of so-called "old economy" companies and the momo tech stocks just got so severe that more than a few funds and individuals simply decided it was time to rebalance portfolios. Also IMO there is less than a 1% chance that margin rates get raised this week. You think Greenspan wants that blood on his hands? Even if he was remotely thinking about it you would start to see hints in his speeches so that he could get the market prepared in advance, and thus do some of his work for him. BP