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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (43178)	1/6/2001 9:11:12 AM
From: SE	Read Replies (3) \| Respond to of 44573

I know you are a touch bearish for at least the intermediate term, but consider this. Futures magazine came the other day. Cover was something like all the pieces are in place for further index deterioration. Big headline. Nasty pictures. The whole nine yards. The last major cover like that that I recall is the one about oil going to zero. I recall that cover because shortly afterwards the mother of all bulls made a call to the oil markets. Perhaps we are about to or have already bottomed. The Futures Magazine indicator suggests so. Food for thought is all.

To: Patrick Slevin who wrote (43178)	1/21/2001 11:03:14 AM
From: virtualsignal	Read Replies (1) \| Respond to of 44573

Hi Patrick, talk about divergence’s, mine was longer…just by a bit. Rotation of "getting things on track".... Seems I’m making progress. I’m live, wired and ready to trade a future. Have my setup, may just PT it again this week and see if things are OK. But I’m aiming. Getting back to your question, > What is the relationship? < It’s a Surprise … Rate Cut The Fed has only hit the panic button four times during the Greenspan era: · The Fed suspended the fed funds target and poured money into the banking system during the 1987 stock market crash between October 19th 1987 and November 3rd 1987. · The Fed cut the fed funds rate 25 bps on December 6th 1991 and then 50 bps on December 20th 1991. The second 50 bp rate cut looked out of line with the pattern of gradual monetary ease. · The Fed cut the fed funds rate 25 bps inter-meeting on October 15th 1998 during the heart of the LTCM crisis. · The Fed cut the fed cut the fed funds rate 50 bps on January 3rd 2001. The rate cut was a function of a surprisingly weak economy and problems in the utility sector. Given the infrequency of the Fed to either panic or cut rates aggressively, it would be a good idea to investigate the stock market's reaction to surprise rate cuts. Percent Change of S&P 500 Futures After "Surprise" Fed Rate Cuts Days +5 +10 +15 +20 10/19/87 9.31% 27.92% 28.2% 21.3% 12/20/91 0.39% -3.87% 0.3% 1.0% 10/15/98 2.13% 3.05% 7.2% 5.6% (Thanks SE, it worked) >01' looking like 91' (my thought at the time)< Not!, Looks like 98’ so far. You bring up a good point on broader market patterns. Interesting week coming up, but forgetaboutit for this week and caught the SB and post market effects. So sorry to hear about your mom again, I can relate. Good health to her and God bless her! Try and Enjoy the game, not a big NY’er fan, (kinda goes with the terrority :) ), but should be an interesting time. Hey, just bringing the kids along to the SB will be worth the price of admission. You will have a lot of Fun; I know cuz I have this Psychic ability. :)