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Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (1150)	5/25/2000 11:10:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

Stock trends are disturbed by Greenspan's threats to raise interest rate again in June, 2000. Market makers know they need cash to survive Greenspan's threat. Cash is king. Pull back can not raise cash. None of the 680 market makers in this country understands that psychology of market making? True, the desire to make money is to buy back shorts and free up the profits(really small percentage) into cash. Brokers should do well in profits, unless volume reduced. But if investor psychology(fear of pull back) continues, 1987 crash can happen again. Brokers will all be broke. So, slight overbought will give the market a smaller nice move. Investors who nibbles may survive with small increments of gain. Long term still demands stay on the side lines until crash is averted. Greenspan is playing with fire because banks are buying equities, selling treasuries. The market is going to break a few camels' backs or is it banks. Equity is more than technical analysis and fundamental outlooks of business. The government with a wrong policy and timing can and did destroy the 1970's economy and trying at it again, today. Our job is to bypass the government policy and survive the new economy by being self sufficient, smart and reliant of self worth. Don't borrow. In recent years, reduction of credit card growth is promising. We will bypass the FEDs and stop them from messing up the economy, forever. FEDs were stopped by congress twice in the last two centuries by not renewing their charters. This one may not be stopped in congress, but may have to be supervised and limited to a smaller change of interest rate in any given time periods.