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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (5228)	9/4/1998 5:44:00 PM
From: yard_man	Read Replies (1) \| Respond to of 86076

Why would the fed tighten during a full-blown recession -- they should ease, right? Wars are usually stimulative to demand, aren't they? Oil shocks -- you mean overproduction? Are you making fun of me again?

To: MythMan who wrote (5228)	9/4/1998 5:46:00 PM
From: yard_man	Respond to of 86076

See the bold sentence below -- yes it does make me suspicious! US stock index futures cut losses late, end lower CHICAGO, Sept 4 (Reuters) - U.S. stock index futures slashed steep losses late to end moderately lower ahead of the long U.S. Labor Day holiday weekend. September Standard & Poor's 500 futures fell to 955, then whipped around in active trade on strong dealer buying and positioning for the weekend to settle off 9.50 points at 976. ''My feeling is that this market is just sold out,'' said Richard Scarlata, editor of the Sutton Daily Advisory Letter. ''It was a fairly strong close after being down so far.'' Traders said they were worn out as well after the very high volume and choppy dealings that drove the market all week. ''Every day has been a long week so far,'' one trader observed. Scarlata said stocks gave way early on more concerns about international issues involving Russia, Japan and Latin America and the possible impact on U.S. corporations. Those concerns should soon subside in favor of an emphasis on strong U.S. fundamentals, Scarlata said. Also, the slump toward 7,400 in the Dow Industrials and 955 in September S&Ps, with the subsequent rebound, confirmed a bottom. Stocks should begin to retrace losses next week with a minimum expectation of 50 percent, or 1,067 in September S&Ps and 1,079 in December S&Ps, Scarlata said. December becomes lead S&P month on Thursday and the contract is not likely to find much resistance until about 1,110, Scarlata said. Enormous amounts of cash sitting in money market funds will likely return to the marketplace, adding more fuel to the move, Scarlata said. ''People were expecting a late September or October correction and we got a July-August correction'' Scarlata said. Traders said falling banking and technology stocks led to the sharp drop late with one aggressive September S&P seller in otherwise thin conditions.