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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (32057)	2/27/2001 8:55:57 PM
From: Dealer	Respond to of 65232

To:traderjamie who wrote (5843) From: Michael Watkins Tuesday, Feb 27, 2001 8:51 PM Respond to of 5844 Interesting that M2 and their composite monetary indicator were steadily rising all the way into the depths of the Oct 98 decline. Its too bad the chart doesn't plot earlier than 1996 - would be interesting to see what the picture was in the decade prior to 1996. What is startling is the rate of change and from whence it came. Rather than take any comfort from the rise in M2 (Fed coming to the rescue thinking), it may be simpler to wait until M2 decreases sharply, since that 'should' indicate the worst is over. Its still going up, according to the chart you linked. Put another way, as long as it is rapidly increasing, someone in Washington fears something big. That kind of thinking puts "don't fight the Fed" into a new and perhaps more useful light! Bottom line - lets not try to be heroes and buy a bottom before there actually is one.