Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Dom B. who wrote (36922)	3/18/1998 8:32:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

INDEX UPDATE ------------------------ Have started watching the interest rates more closely, that is a major reason why this market is so strong. I had previously indicated that the rates we setting higher highs and higher lows so far that that if it remains in the same technical pattern, it appears that they will hit 6.15% by 2nd week of April. I am fully aware that almost everyone thinks that rates will go lower, but for the short term, it is heading up. Of course news over rides the technicals and the rates could turn down on the dime. If anyone was watching the intraday trading on the rates, the low was 5.828% and it closed near its highs at 5.88%. That is not a small change. Also, per my short-term technicals it confirmed a reversal to the upside. The rates are only .12% away from 6% again, and that amount can be covered in just a few days. With some not so good economic reports we could even see 6% this week. I have heard that the real nervousness will start when interest rates hits 6.2%, but wouldn't some nervousness start at 6.00% - or will it be totally discounted at that level. I am not saying that down the road, interest rates will not go down and stay below 6.00%, but just for the short-term the trend is definitely up on just a technical basis. In light of the stock market being so high, and if interest rates hits 6.00% next week - I am suspecting that next week should be the weakest period, on a technical basis, since this rally began in JAN; therefore next week should have a better chance to have a bigger pullback than those small 100-150 point intraday/1-2 day dips we have seen since this rally started. Watch the interest rates this week. If the rates continue to climb for the rest of this week, even in small amounts, we could easily see 6.00%, or close to it by next week. Let's see if the market will totally discount rates at 6.00%, there should be at least a little bit of weakness then. Seeya