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To: yard_man who wrote (72018)	2/26/2001 5:14:56 PM
From: UnBelievable	Read Replies (2) \| Respond to of 436258

I Think Bear Stearns Is Just Blowing Smoke (Or Smoking Blow) Market expectations aside, many Fed watchers see little compelling evidence for the Fed to ease ahead of March 20. thestreet.com

To: yard_man who wrote (72018)	2/26/2001 5:21:28 PM
From: Les H	Respond to of 436258

Short Sellers Dream In our last report on Feb 10 we were looking for a reflex rally to test the 1341 level. This occurred as the S&P moved to 1342 on Feb 13 and then closed at our key pivot level of 1305 on Feb 16. As this key level was broken the floodgates were open to the downside dropping the S&P 500 futures to a low of 1217 last week before a late session rally on Friday to close at 1247.50. This late rally on Friday combined with the extreme tape reading of tick, tiki, advance-decline and trin setup a nice low to trade against. Friday’s reflex was the first such reflex since breaking the 1305 level. The parameters are now fairly simple. A close back below 1217 and the market remains in major limbo. The first real stepping stone on the upside is 1305 with the next major hurdle at 1342. As you trade this type of market remember that the swings are much wider than normal. Therefore, if you are going to trade the same size your equity swings will be much larger than in previous months. If the volatility is too much for your account cut your size at least in half. This will allow you to widen out your stops and trade the market more effectively. Market Outlook Where does the market go from here? The market was badly wounded in over the past several months and is going to take some time to nurse back to health. Reflex rallies should be viewed as non-sustainable events until the S&Ps can close back about 1305. It will take a fundamental change in psychology to bring buyers back into the market. Without a substantial Fed action this process will take time. With the current volatility there are still significant trading opportunities. We will continue to explore these opportunities in both the S&P and Nasdaq in our daily reports. Be nimble, play defense and this environment can be rewarding. marketweb.com