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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (8608)	12/5/2000 8:35:39 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 30051

Hi Zeev: A couple of points on today. The Bush news was only good for the 1st 80 or so points on the naz. The rest of the day was due to AG and with the late day strength, mutual funds started to committ cash (actually chasing the rally). IMO AG did indicate the following: 1) Banks may be tightening credit standards too much. 2) The economy and inflation risks are in balance (indicating going to a neutral stance). 3) Some comments on needing to be careful on the drop in financial assets (so even though the S&P is still overvalued by the FED model he is now concerned that such a swift drop in the wealth effect can clamp down on consumer spending too much) The most importan point about todays speech is the market is no longer fearing the FED is oblivious to the economy as it has been grinding out inflation (including financial asset inflation). So Zeev the FED will go to neutral in two weeks but I don't think the street is antipication a rate cut till Feb / March. Of coure IMO he need to cut now to avoid the recession but hey maybe we need a recession with all the excess he created with the y2k liquidity. I think we start a pull back soon but this time we don't revist 2,500. We can still make 3,500 early next year (I know its a stretch and we need to break 3,000 first. Have a good night. Tim