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

To: pater tenebrarum who wrote (50976)	5/16/2000 3:07:00 PM
From: Jacob Snyder	Read Replies (3) \| Respond to of 99985

went from 30% to 70% cash, just before the Fed announcement. Got out of most of the positions, I'd initiated earlier this year (CMH, MSFT, WCOM) at prices 5-15% above what I paid for them. I know those stocks are undervalued, but I think they will get even more so, sometime this year. The Fed raises by 1/2%, and (more importantly) says the future risk is toward inflation. That means that, unless there are very clear signs of a slowing economy very soon (unlikely), the Fed will raise again, by another 1/2%, in June. For the market to go up, or stay up, on that news, is irrational. We should be seeing a massive sell-off. We should have the S&P 500 at a trailing PE of 20. In addition to raising a lot of cash, I shorted QQQ at 90.8 today. And I'll short more, in increments, if the market gets more irrational (=goes up more).