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

To: Ken W who wrote (10248)	11/13/1998 10:24:00 PM
From: Sergio H	Read Replies (2) \| Respond to of 29382

Ken the retail reports were above expectations mostly because of the volume of new car sales. The car sale numbers were boosted by manufacturer's rebates and other incentives. It is unlikely that the car sales numbers will continue at the present pace for too long. In analysing the chances for a rate cut, continue to watch the divergence between the 3 month T bill and the discount rate. The difference right now indicates a 65% chance that the Fed will lower rates next week. Further evidence in support of the market's anticipation of an upcoming rate cut is the rally in the financial stocks today. BTW, Nice going on picking up LBFC. Potential downside is almost nil and the potential upside (rate cut) is huge. Sergio