Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jacin who wrote (40969)	1/15/2001 6:02:49 PM
From: Square_Dealings	Read Replies (2) \| Respond to of 42787

I agree, I think the Fed is playing the stock market. Mutual fund redemptions were a record $13 Bln on the first day of trading that week. There was a major confidence crisis in the market and you could feel things starting to go over the cliff at the very moment that the Fed announced the surprise 50 bp cut. Based on the action so far I would expect that if the market pulls back significantly the Fed will cut at the next meeting or even before. If the market holds up or even rises into the meeting the Fed will not cut and then the market will go down on that. M.

To: jacin who wrote (40969)	1/15/2001 9:20:15 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 42787

I e-mailed a copy of a speech given by Mr Ferguson of the FOMC last week to Dennis and highlighted key phrases etc but didn't save a copy for myself unfortunately. In that speech, he basically admitted they cut the rates due to the Calif Energy company crisis. Then after saying they don't target the stock market, he basically came right out and said that future rate cuts would depend on what the market was doing. In other words, they are targeting the market but as they admit they are, they also deny it in the same breath since that is not part of their charter. As I said, they KNOW this is a bubble and they know they can not let it pop. I still think they just want a sideways market to let things mellow out, stay flat and let earnings catch up to the valuations which have been placed on stocks thus far. Good Luck, Lee