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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Giordano Bruno who wrote (12632)5/2/1999 11:45:00 AM
From: stockycd  Respond to of 99985
 
jjsirius,

Has the Feds job been relegated to the Bond market?

Doesn't the bond market lead the FED in terms of rates? What I mean is--the 30 yr Tbond starts up first, then you'll see the FED raising rates down the road. Not in a cause/effect situation, but just historically.

The bond market is one of the best indicators of inflation. When the price deflator came out Friday, bond traders got scared. The momentum in the sell of was so strong, that it will continue and we will be looking at high 5's for rates very soon.

BTW, I have some preliminary indications that Monday could be very ugly. Not trading tomorrow!

Chris