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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?


To: TREND1 who wrote (39576)3/10/2002 11:00:36 PM
From: Crimson Ghost  Read Replies (1) | Respond to of 99280
 
Larry:

Looking back the market usually is skating on very thin ice whenever ther Fed model reaches 20% overvalued. The big exception of course was the monumental 1999/2000 blowoff and 1987 to a lesser extent



To: TREND1 who wrote (39576)3/14/2002 11:42:48 AM
From: Jdaasoc  Read Replies (2) | Respond to of 99280
 
the FED Model is how quickly the relationship between the SP500 and the
10 year bond causes over valued and over sold conditions


Any updates since bonds have stopped their 5 day slide.

Was thinking about FED model variables briefly

the variables: S&P earnings est. and 10 yr bonds rate are pretty much based upon future earnings expectations.
In addition, they usually move in same direction as applied in your equation. Higher earnings growth estimates in S&P tends to lead to higher bond rates off recent lows. This could be part of the wide amplitude swings of over bought and oversold observed.