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

To: Crimson Ghost who wrote (58591)	8/31/2000 11:52:56 PM
From: Square_Dealings	Read Replies (1) \| Respond to of 99985

George, What I dont get is how do we expect the trade deficit to go down if foreign currencies are beaten down and Euro interest rates higher? This isnt the first time Ive been totally confused by fundamentals and the US stock market. M.

To: Crimson Ghost who wrote (58591)	9/1/2000 12:09:52 AM
From: Les H	Read Replies (5) \| Respond to of 99985

It's called a climax run. The Nasdaq is above the upper 2 1/2 standard deviation band and just 40 points below 3 s.d.'s. The NDX is about 20 points below its upper 2 1/2 standard deviation band.

To: Crimson Ghost who wrote (58591)	9/1/2000 8:04:28 AM
From: Box-By-The-Riviera™	Respond to of 99985

George you asked: What is wrong with this picture? Commodities booming. Even gold starting to rally. Investors seem to expect that lots of companies will soon start to pass their higher costs along to customers -- and hence are bidding stocks higher. But the bond market keeps rallying and the Wall Street establishment keeps saying that inflation is peaking and will be no big problem longer-term Talk about having your cake and eating it too. All the markets -- stocks, bonds, and the dollar -- are assuming the most optimistic resolution of extant problems -- even when such resolutions blatantly contradict one and other. Clearly something must give and soon. It is very simple. Everything now has a positive value and gold will rally simply because it is relatively undervalued compared to everything else. Ride the wave dude!