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

To: Les H who wrote (57140)	7/25/2000 10:24:02 AM
From: Saulamanca	Read Replies (2) \| Respond to of 99985

That was a nasty gap to buy into this morning. It seems the sellers are still lurking. This morning we got the lowest TICK on the Nasdaq since May 25.

To: Les H who wrote (57140)	7/25/2000 11:49:22 AM
From: John Madarasz	Respond to of 99985

...Greenspan Signals End of Rate Hikes If The Fed Is Almost Finished Tightening, Is Easing Right Around The Corner? Paul Kasriel Chief Domestic Economist "Back in April, we forecast that a significant slowing in the pace of economic activity was imminent. The basis of that forecast was the behavior of broad monetary aggregates, adjusted for prices. Although far from a perfect relationship, there is a distinct positive correlation between growth in the "real" M2 money supply and growth in real measures of economic activity, such as personal consumption expenditures. This relationship is shown in the chart below, with real M2 growth advanced by two quarters. Notice that this relationship is not a Johnny-come-lately. It has held for at least the past 40 years, the extent of our data. If the data were available, we suspect they would show that a real money - real economic activity relationship has held since time immemorial. Yes, real M2's predictive powers went haywire in the early 1990s. But, as we discussed in our July 6 weekly commentary, this temporary forecasting glitch for real M2 was due to problems in our banking system, problems that thankfully do not exist today. " ntrs.com Regards, John M.