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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: da_cheif™ who wrote (3059)	1/3/2001 2:09:46 PM
From: John Pitera	Respond to of 33421

Well we got the Fed cut within a day or two of the time window I suggested yesterday...... 13:15 ET Fed Cuts Rates : Fed lowers Fed Funds rate by 50 bp 13:20 ET Fed Intermeeting Cut : Market rallies on news the FOMC has lowered the Fed Funds rate by 50 bp and the discount rate by 25 bp in an intermeeting move. 13:27 ET Market Response : Investors eager to buy them. Problem is flood of orders has created fast market conditions, resulting in order imbalances and delayed executions. 13:29 ET Fed Intermeeting Cut : Undoubtedly there will be questions about why - some will suggest Fed panic, and that they know of worse news on the horizon, perhaps in Friday's Employment Report. But that's doubtful; there is plenty of evidence already on the table arguing for an aggressive Fed move. It is probably the case that Greenspan wanted to move back at the Dec 19 meeting but didn't have the votes yet. He instead opted for an easing bias, and an aggressive move now on the heels of what was a very grim NAPM report yesterday.