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


To: t2 who wrote (78826)6/15/2001 9:10:26 PM
From: Boplicity  Read Replies (1) | Respond to of 99985
 
I think 75 would be bad for the market as in, "it's bad, it's really bad, it's getting away from us now". All these wild moves has to be weighing how people perceive the safety of having money in the market, the psychological aspects of the continuing gyrations are sure to cause people to sit on their hands after awhile and enter into a wait and see mode. You just can't turn a blind eye to the possibility of q1 more like q2 2002 as the time for the recovery to happen. That's just too long a time to wonder about the safety of their holdings. We might need a test of the April low to wash it all out.

B



To: t2 who wrote (78826)6/17/2001 9:32:33 PM
From: mishedlo  Read Replies (3) | Respond to of 99985
 
NV - Does it really matter one iota if the FED cuts .5 vs .75 vs .25

1) Hell .75 might scare the crap out of the market if anything.
2) Greenspan can not cut forever - The long bond knows it, mortgage rates know it, everyone should know it
3) Consumers are nearly tapped out, if housing slows, or the $ sinks, or retail jumps off the cliff it is all over but the final panic (most likely next year but not necessarily so).

As for now all this focus on .25 vs .50 is silly. The Naz is below the last rate cut already. Hell it is below the last 4 rate cuts. What is special about this one besides NOTHING! If greenspan had any brains he would do nothing as the market is going down anyway. May as well save his ammo for later this year when it might do some good.

M