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To: dealmakr who wrote (57409)	11/14/1998 8:34:00 PM
From: donald sew	Respond to of 58727

Dave, >>>>>>>> If the Fed cuts the rates, is any part priced in to the equity markets? Comments anyone? <<<<<<<<< Just posted my research on the NEW HIGHs/NEW LOWs. If the FED cuts rates and the NEW HIGHs stays below 100, expect a decline of 5% or greater within a month.

To: dealmakr who wrote (57409)	11/14/1998 8:36:00 PM
From: HairBall	Respond to of 58727

David: That is the sixty-four million-dollar question. <g> If the Fed does not cut: 1) The Market could drop because it is already priced in. 2) The Market could rally because it would be viewed as a sign the world economy is getting better and is not going to effect our economy. 3) The Market could trade flat because of a mixture of both one and two. If the Fed cuts: 1) The Market could drop because it could be viewed the world economy is still in bad shape and it is coming our way. 2) The Market could rally because it is a sign the Fed is on top of things and after all, lower interest rates are suppose to be good for stocks. 3) The Market could trade flat, because it is already priced in or a mixture of both one and two. AND do not forget the proverbial digestion of the news reversal. Whatever the Market does, the Talking Heads will assess a reason! In other words, the Market will be down, but it could trade flat or even down. (How's that Nemer?) I trust I have made it clearer...<g> BWDIK Regards LG