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

To: Les H who wrote (55994)	7/4/2000 10:59:33 PM
From: Les H	Read Replies (3) \| Respond to of 99985

WEEKLY LIQUIDITY NEWS UP DATE July 3, 2000 June liquidity sets a record of positive over $50 billion. Huge cash takeovers and hefty equity funds flow were the keys. Sideline cash popped at US funds to 4.7% in May from 3.8% in March. Cash likely grew again in June. Will it get spent this July? June's estimated US funds flow of $25 billion versus $13 billion in May. We expect big early July inflows. If tax collections slow, so will equity fund inflows & the us stock market. Withholding, other income, and corporate taxes growth rate slowed in June. We turn more bullish for the short term. The new cash added by the expected beginning of the month flow surge should put upward pressure on stock prices. That is particularly so since new offerings typically slow the week of July 4 Our bullish stance is not likely to last long. That part depends upon income tax collections keeping on slowing to the 5% to 7% year over year pace from the double digit gains of the past several years. Also, Wall Street underwriters will be trying to sell as many new shares as possible starting next week. More interesting on seasonality of S&P 500 trimtabs.com