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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: JOHN W. who wrote (24304)11/16/2001 12:04:47 PM
From: Paul Shread  Respond to of 52237
 
But of course there's another side to that picture, which is based mostly on stimulus that has so far failed to work. And that is that the economy hasn't even begun to turn up.

In 1932, the last time we had a manufacturing decline this long, the market did not turn up until manufacturing output did.



To: JOHN W. who wrote (24304)11/16/2001 1:37:23 PM
From: ajtj99  Respond to of 52237
 
Uh, John how can options expiration Friday be a telling indicator of the market direction? From my experiences, it is one of the worst indicators.



To: JOHN W. who wrote (24304)11/16/2001 1:53:02 PM
From: 4rthofjuly007  Respond to of 52237
 
Why do you feel the market is "ahead of itself"?

I hope you don't mind if I point out the flip side of the factors you feel might signal a strong market.

A great deal of the liquidity the Fed pumped in is short term in nature via repos. The pump was turned on high gear after Sept. 11 and as the "improving geo-polictical" unfolds, it may be turned off and the excess taken out. Yes, the bond market is selling off. This tells us that the likelyhood of further easing is diminished and that treasuries are being sold. It does not automatically mean that the economy is recovering nor that the bond money will definitely go into equities.