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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StockOperator who wrote (38309)	12/18/2000 12:33:12 PM
From: Peace	Read Replies (2) \| Respond to of 42787

SO, The Bond market is not expecting a rate cut tomorrow. A rate cut is priced in for January and subsequent meetings. Although, I trust the bond market and dont expect a cut tomorrow, if we do get a cut tomorrow (0.25) the market will react positively. I think the equity market is not expecting a cut either, confirmed by a lack of runup in to the meeting. The economy is still healthy and Greenspan is known for moderation, which means a cut of 50 bp or higher is completely out of question. OTOH a cut of 25 bp will be a surprise for the bond and equity markets and a reaction rally will be a logical outcome. Whether the market can build on gains from that point on will depend on how bad the earnings picture gets. Peace