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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (5790)	3/5/2002 10:54:34 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

I've pondered selling short the homebuilders a couple of different times the past year, but have not become real committed to the idea. The Eurodollar futures of which Dec 2002 is the most active and has the greatest open interest has had a good selloff the last 4 market days. It looks like the credit market has been believing this equity market rally. Or at least they've been buying into this economic recovery idea. 11:37 ET 10-year: -10/32..5.034%....GNMAs: -4/32....$-¥: 132.19 Tomorrow's report on january factory orders will show the first back to back increase in almost a yearWhile the ISM survey (manufacturing) provides a good forward read on new orders and the manufacturing sector the stark difference between the continued downward trend in factory orders and the surge in the ISM new orders index is worth note as business investment (read factory orders) is the element continuing to drag the economy. The extremely strong 62.8 level of Feb ISM new orders compares to the largely absent rebound in factory orders. Just how forward leading the ISM index will prove to be is the chief concern among the policymakers as the ISM index is a qualitative measure compared to the quantitative measure of factory orders.