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

To: Tunica Albuginea who wrote (55202)	6/25/2000 10:00:00 AM
From: ED_L	Respond to of 99985

If one looks at all the major indexes on 10 year graphs they look overextended. Only the XAU appears to have bottomed and is poised for a rebound. Although the major gold mining companies such as NEM and AU have been in a downturn since early may, a few such as DWSN and DBRSY appear to have turned the corner and are moving up.

To: Tunica Albuginea who wrote (55202)	6/25/2000 2:34:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 99985

The Fed knows that once the process takes hold, it doesn't reverse in one month's, or even a few months', time. Policy-makers also know that the rate increases administered to date affect the economy with a lag. Just the way Greenspan used his intuition when he let the economy cruise full speed ahead, he is going to have to tap those talents again to decide when he's done throttling back. Good article Tunica... The effects of those 6 rate hikes plus the stabilization of oil prices should start showing up in future CPI readings... I believe that Greenspan and Co. understands full well, that "lag" effect, and will stop the rate hikes at or immediately after this Tuesday's meeting... Otherwise they would be piling on to the last two or three hikes that have yet to weigh on the economy... It would put the next president in an Economic Box as budget surpluses start to dwindle... I don't think Greenspan would want to start off on the wrong foot with a new president... Jim