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To: Haim R. Branisteanu who wrote (40169)1/5/2001 7:26:18 PM
From: eichler  Read Replies (1) | Respond to of 42787
 
Haim,
As I have not followed the fed liquidity pump until reading occasionally in your posts, I was wondering how you would compare the current pumping to the Y2K pumping before the
Naz blew up, then down. Do you think we could see a similar
event unfold? Not as spectacular, but perhaps a mini-version?
TIA
Regards,
Eichler



To: Haim R. Branisteanu who wrote (40169)1/5/2001 10:42:10 PM
From: Stephen  Read Replies (1) | Respond to of 42787
 
Haim, I have no evidence of that from what I watch ... Additionally, when Bill Seidman comes on CNBC and says he thinks the NASD will be around 2000 by year-end, it doesn't give me any confidence of timing any recovery, given that he is so highly connected and is an advisor to many, including the Japanese government ... I find it difficult to think he'll do anything to encourage foreign maintenance of monies in US equities. In any event, if what you think is right, it should be evident soon enough. Certainly the early earnings next weak from MOT, YHOO etc .. are from companies who are expected to report weak numbers and forward guidence .. so I'm not sure from where the market will get its encouragement. I see sideways for a few days ... but certainly the possibility for a big shakeout somewhere aswell.

Course ... Abby was very constructive about the market tonight on Louis Chucklemeister .. so I guess everything must be hunkydory ... LOL.

Actually .. it also concerns me that the Fed is pumping in liquidity and all these growth managers keep saying they are nibling at this level despite redemptions ... and the market isn't rising.

Anyone who thinks there isn't the chance for a cascade effect to the downside is wrong in my opinion. Today there were few buyers ... and if the selling had intensified the market would have dropped hard on fears that something real bad was out there. My guess is that most of the high-profile companies will give weak guidence going forward and the earnings period could get ugly. But ... I'll let the market lead me. Unfortunately ... I was shorting more in the uptrend - duh !. I feel like a real amateur as yesterday it was clear I should short - but wouldn't do it.
Ah well ..

Have a great weekend Haim, and everyone ...

Regards

Stephen