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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (9124)	9/27/1998 8:52:00 PM
From: Amigo Mike	Read Replies (2) \| Respond to of 29382

Tuesday is "D" day for the markets .... IMO. Will Greenie make a cut or will there be no cut at all ???? The $64,000 question. We will probably rise on Monday in anticipation of a rate cut ..... then trade lower early Tuesday because of the uncertainty before the meeting. THen it will hit. IMO ..... this will make or break the market. No rate cut and the market will TANK. A 1/4 pt cut I think will be seen more as a "token" cut. Won't really do much for the markets and will probably sell off. A 1/2 pt cut and things get interesting. Add a possible coordinated cut by the G7 and the market should rally very strongly. Credit is going to tighten as a result of the LTC bailout. A positive outcome has already been assured there ..... but other hedge funds will not be lent funds so quickly going forward ... creating liquidity problems. The Fed has to provide some liquidity to offset this situation and to signal the rest of the world the the US is not immune. This is make or break week ! If we get a 1/2 point ... the markets will race ahead. No cut ..... and watch out below. It is also interesting to note that mutual took in huge amounts of cash late in the week. So there is cash out there to buy. Amigo Mike