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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (718)	4/3/2000 11:50:00 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 33421

GZ, On thhe Nas.... Although not pure....for the 2nd day. Can this be a 3 day weekly sell wiggle..? siliconinvestor.com

To: GROUND ZERO™ who wrote (718)	4/3/2000 2:21:00 PM
From: John Pitera	Read Replies (2) \| Respond to of 33421

Interesting Missive by JJC--The Fed Tightenings Might Be Over By James J. Cramer 4/3/00 12:39 PM ET Click here for the latest from James J. Cramer. Here's a theory for you. The Fed, despite its protestations, was really targeting tech stocks in its repeated tightenings. Now that the fluff has started to come out of tech, those who buy stocks with earnings think they are about to get a break. Let's go over the tortured logic of this analysis. There was never anything overinflated about the part of the economy with earnings. In fact, these guys have been taking it on the chin for some time from global competition and merger downsizing. But Greenspan & Co. were upset about the dot-com economy, and its wildly overinflated prospects. The Fed decided it would tighten until it popped the bubble. Now the bubble is popping, so it doesn't need to tighten any more. (That's how I would describe the action on my screens.) So now we can expect to see a higher multiple paid for real earnings, or "multiple expansion," something that always happens when the Fed is near finishing the tightenings. Why am I buying into this logic? Because the NAPM numbers showed a lot of strength, yet the financials and other interest-rate-sensitive stocks are rallying, something that doesn't make sense on the face of it. Only this theory, that the Fed can now take it easy on the tightenings because the dot-com bubble has burst, can explain this kind of rally.