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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (5777)	12/22/2000 5:04:55 PM
From: David Lee Smith	Read Replies (1) \| Respond to of 19219

The FED chairman is to meet in California next Tuesday to meet with Utility officials. Two utilities are facing possible bankruptcy. The interest rate cut rumor stems from that news article. I don't see how lowering rates is likely to save the utilities. However, I think they are working on a bailout plan a'la'LTCM. This has got to be very bearish for the stock markets next week. Money that would be put in the market may be diverted to a multi-billion dollar utility bailout in California. To offset the liquidity drain of the bailout, the FED is likely to cut interest rates temporarily. Although psycologically positive, the cut should not be viewed positively. It will be an emergency measure to a crisis. Like all wounds, the medicine will only give temporary relief. It will take time to heal. I'd use any rally to take profits until earnings turnaround.