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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: gongoman who wrote (79157)	6/23/2003 3:39:38 PM
From: FLACK	Respond to of 100058

gongoman... Sorry... wish I knew. Hate guessing the action around the Fed meetings... which is why I'm currently playing some commodities and only a couple of equities. You know... if you can't figure out where it's likely, to go, then you'd better stay away. <gg>

To: gongoman who wrote (79157)	6/23/2003 7:43:34 PM
From: bcrafty	Respond to of 100058

gongoman, here's an excerpt from an article today at cbsmarketwatch.com Market to sell off on Fed? The debate on the size of the Federal Reserve's expected interest-rate cut this week raged on Monday. Read Economic Preview. The federal funds futures markets are fully pricing in a 1/4-point rate cut and are factoring in a roughly 60 percent chance for half a point. The Fed's decision on the overnight lending rate is to be unfurled Wednesday, at the conclusion of a two-day meeting to review U.S. monetary policy. Tobias Levkovich, Smith Barney's senior equity strategist, said the actual rate cut might be less important than the statement the central bank releases at the conclusion of its gathering, which holds the power to exert an impact on long-term rates. Jeffrey Saut of Raymond James believes the market has rallied its way into a "lose/lose" position ahead of this week's Fed meeting, he said. "We expect the market to sell off no matter what the Fed does. Our strategy is to harvest some profits this week," the strategist told clients. Saut said he remains skeptical of expectations for a robust economic recovery in the second half of the year. He feels the economy is improving, he said, but at "crawl speed." "Unfortunately, crawl speed is not fast enough to bolt us out of the economic 'soft spot' or support the stock market's current valuation level." Alexander Paris of Barrington Research conceded the market's sharp gains off the March lows have made it vulnerable to losses. And negative second-quarter pre-announcements have combined to stimulate more selling. While the economic outlook is "improving," Paris said he believes market corrections are likely to be characterized more by sideways action than by aggressive stock dumping. "Investors are having trouble finding fundamental reasons for more aggressive selling," Paris said. cbs.marketwatch.com