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

To: David Howe who wrote (79081)	6/20/2001 2:42:21 PM
From: t2	Respond to of 99985

First it was MSFT rumors; then AMD; and now IBM. 3 earnings warnings rumors in one week along with lots of negative analyst comments (primarily from Merrill Lynch analysts). These rumors parallel the story of the boy who cried wolf. Investors/Traders have stopped paying attention to the rumors. There is the FED next week but maybe more importantly, the European Central bank meets tomorrow and could cut rates...that is a recipe for a major market rally, imho. Traders will anticipate that unfolding and position for a move up..either today or tomorrow. IMHO, Euro bank cuts rates at the first opportunity, which may be tomorrow. My hunch is that if the interest rate decision is tomorrow, a major cut of 50bps will catch people by surprise. Even 25bps may be a surprise to some. My bet is on 50bps.