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

To: Boplicity who wrote (65952)	1/5/2001 6:48:50 PM
From: DukeCrow	Respond to of 99985

The reality is that the Fed is just following the bond market. They lag and do not lead. The only real impact of the Fed is in averting crisis (such as LTCM) and influencing the psychology of the market. Wednesday's cut certainly was an attempt to change psychology. Now the question is whether there is a crisis that the Fed is trying to save us from. Maybe the power situation in Cali has the potential to cause a massive distortion in the derivatives market. Or maybe not. I think the market is looking hard to see if there is a crisis, and that is causing a little uncertainty out there. Ali