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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (3389)	3/7/2001 2:38:26 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

here is some musings by Hitt: If I were the Fed and wanted to boost the market (I did not say they do, just IF they did) the ideal time to do something would be to take clues from the last wildly successful effort to turn the market higher in 1998. The 10/16/1998 rate cut was the third cut in a short period of time. It was timed to be about a week after a significant low. A rally up to but not above an inflection point occurred off the low leaving bears still positioned and very vulnerable. Based on many factors including negative astro a lower low was due a few weeks after 10/16/1998. In 1998 this lower low had potential to become crash like once the prior swing low was broken. I think we see a strikingly similar setup right now. BEARS BEWARE!! OK so you want to take a shot at speculating on such a turn of events as a surprise cut. The inflection points for bears maximum pain on the indices would be ABOVE S&P 1300, Dow 11,000, and Nasdaq 2500. If you want to take a VERY speculative position the March call option strikes above these levels would be where to focus. A surprise rate cut on Thursday would blast markets through these levels.