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


To: John Madarasz who wrote (45251)4/6/2000 6:25:00 PM
From: pater tenebrarum  Read Replies (2) | Respond to of 99985
 
John, i know...the slowdown in bubble expansion once again coincided PERFECTLY with a slight slowdown in the expansion of the monetary aggregates as of the third week of March. as usual, the full effects were felt with a two-week delay, just as the rally beginning in March expiration week was preceded by two biggest weeks in terms of money supply expansion in recent memory.
the connection between the Fed's printing (well, button pushing these days) and the stock market bubble is being beautifully demonstrated in real time over and over again.
which proves that every single sentence uttered by a 'strategist' or 'analyst' on WS is plain and simple a complete waste of time....it's a bubble, and the Fed is feeding it. when they stop feeding it for only one week, it nearly collapses....so i guess it's back to feeding it again.
the situation has been most succinctly brought to the point by the Economist cover that showed Greenspan trapped in the bubble of his own making...

we have long ago passed the point of no return...inflate it further, or it collapses, period.

i can imagine every single government in the world looking forward to the monthly US trade balance data with great trepidation, asking themselves which one will be the straw that breaks the camels, i.e. the dollars, back. on the day that happens, it's all over....no more printing, no more bubble. deflationary collapse....

regards,

hb

PS: in the meantime, buy the dip! :)