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

To: Rob S. who wrote (63775)	12/5/2000 7:53:36 PM
From: John Madarasz	Respond to of 99985

Rally Catalyst Summary The potential rally that I alluded to on Friday December 1 is in the process of materializing, and it is quite apparent that the finality of the election results is its catalyst. The implication for the longer term, and really for the short-term health of the market, is this: the rally could be strong and noisy. We will hear of mutual fund managers putting cash to work because "momentum" dictates this method of "investing," the spectre of a Christmas year-end rally because equity prices are now considered to be in a "value" range. But this is simply noise, and the reasons given are rubbish. In the end, interest rates and corporate well-being are what matters -- both of which have yet to alleviate their pressure upon a market which is still in the throes of an economic and expectational slowdown... My opinion on the rally: stand aside, for I see no compelling evidence to join this rally. It is based on short-covering, the election and not on any fundamental change in the economy. stockcharts.com