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

To: Haim R. Branisteanu who wrote (53198)	6/6/2000 5:32:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 99985

The highly respected BANK CREDIT ANALYST today says that equity bulls are shooting themselves in the foot. Just what I and some others here have been saying. U.S. Stock Market Surge Means The Fed Is Not Finished (Tue Jun 06 13:50 2000) Last week?s 19% surge in the Nasdaq was fueled by the expectation that the Fed tightening cycle has ended. The market rally in the face of some softer economic data highlights that the speculative fever in the market has not yet been extinguished, despite the poor performance over the past few months. Ironically, the resilience of the equity market, reflecting the excessive optimism by investors, underscores that the Fed cannot delay further rate hikes for long. Moreover, the magnitude in the market moves and wild swings in sentiment are typical near market peaks. The implication is that the equity market, especially the Nasdaq, should soon head lower, once bond yields rebound and the expectation for higher rates returns.