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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Fast Eddie who wrote (70781)	4/27/2001 11:56:39 AM
From: afrayem onigwecher	Respond to of 122087

Never Short a Dull Tape Today’s session had me double-checking my calendar, making sure it wasn’t a Friday in July when all the action moves from Wall Street to the Long Island Expressway, as traders rush to their getaways in the Hamptons. On the news front, we saw jobless claims rise to 408,000, which is the highest level in 5 years. Even more alarming is that the four-week moving average of claims rose to 394,000, the largest increase since 1992. As has been the case all year, we heard immediate speculation that the Fed would certainly cut the rates again on May 15th. Philadelphia Fed President, Anthony Santomero, reassured us in a speech today, saying that inflation is under control and that they will be quick to cut rates further in order to help the ailing economy: "Should further unexpected weakness in spending materialize, the Fed has the latitude to again respond quickly and effectively, just as I believe we have in the past four months…" This statement ignited the bond market, as the short and long bonds gained ground in today’s trading. San Francisco Fed President, Robert Parrry, said today that the turnaround in the economy would take longer than expected, although he still felt we would see faster growth by year’s end. Like he knows. Let’s face it: the economy stinks, we’re in trouble and no one has any idea when things will turn around. Seems to me that the Fed feels if they tell us often enough that we’ll get an L-shaped or U-shaped recovery, it might just become a self-fulfilled prophecy. Oh yeah, they still have a few cuts before rates go down to zero.