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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (77708)	6/1/2001 12:35:07 AM
From: t2	Read Replies (3) \| Respond to of 99985

Zeev, Think the FED will lower aggressively unless the markets (particularly Nasdaq) stabilizes at higher levels. Another reason why the odds of a retest of lows is quite small, imho. There are lots of other reasons why the market is going to stay above 2000 and probably get close to 2500 in a few weeks. I am not saying there is no chance of a retest...just the odds are low, imho...especially with tax cuts on the way. I like the quote from the story below (in bold). It makes sense since investor confidence is connected to consumer confidence which is connected to spending in technology, which is the engine for productivity growth. You can bet that the FED hopes the market is in rally mode just before they cut so it does not appear that they are targetting the markets. This was why I was expecting 50bp cut last month as well; FED can't take chances with a breakdown in investor or consumer confidence and will continue to be more aggressive than the "experts" are anticipating. thestreet.com The Beckner and McTeer stories also found commonality in the once controversial issue of whether or not the Fed is targeting the stock market. It's no longer controversial because it's pretty obvious they are: "One thing that could contribute to changing the outlook and making the Fed more inclined to continue aggressive easing is a further weakening of stock prices," Market News reported.