To: Chip McVickar who wrote (1180 ) 4/18/2000 2:58:00 PM From: John Pitera Read Replies (1) | Respond to
The FED and a 50 pt move in May and a USD collapse areWhat is so strange is that even with the recent strength in stocks, Fed fears have really not come back into focus. For our part, we wonder if the recent supply-related run-up was too easily dismissed as just a speculative rally. While such speculation would seem to support the long end, we have heard from a couple of different sources that there are rumors now making their way through the market that the Treasury will auction 2-year notes on a quarterly rather than monthly basis going forward.The euro looks set to end the day in a sorry state and currently stands towards the bottom of its 0.9450 ? 0.9530 range. Technically the earlier break down out of its former 3-week sideways to higher consolidation phase means that a renewed leg lower is now on the cards with losses towards the 0.9390 ? 0.9330 area signalled over the longer term. There is little on the data front worthy of note out of Europe tomorrow with the focus of attention likely to be centred on the UK?s labour market statistics...more congestion base in the 3,750/3,800 area may contain strength. If that's taken out, better resistance and the day lows from the 5th and 11th at 4,009, would be signalled. Turning to hedge fund exposure we hear Foxhound are down but the real question is how many more are there to go ?..moreThe continued outperformance of this sector suggests that there remains quite a bit of skepticism toward this week?s improvement in stocks. However, as we mentioned earlier this morning, there are some fairly credible names leading the push higher, notably General Electric, Caterpillar, American Express, Hewlett-Packard, Microsoft, and American Express
