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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (50037)	1/20/2001 11:33:48 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 94695

Well I am not sure where we are headed to be honest. I see some liquidity issues as key here. The outgoing Clinton regime was pumping liquidity in via bond repos at an alarming rate the last few weeks. Why we don't know. Was it really just to maintain par with the target rate or was it to prop things up until slick could get out the door and leave the bubble popping to Bush? I think the key to this market may not be fundamentals, TA or investor sentiment, fund inflows or anything like that. It may all simply boil down to if there will be 6-15 billion in repos per day to pump the bubble up or not. Of course we won't know until the first week or so of the new management has had a chance to show it's hand. Of course this also assumes that this decision rests at the level I assume and that it can stop because Summers is gone. I don't know for sure and there could very well be an automatic system in place. Our indicator shows a pullback and I am expecting more than just one day but then as I said, I think it all boils down to the liquidity injections of repos and coupon passes. Good Luck, Lee