Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: steve susko who wrote (26177)	5/12/1999 4:20:00 AM
From: IQBAL LATIF	Respond to of 50167

Higher interest rates and higher markets cannot co-exist, go back to the consolidation phases of this market between 890 and 990 on SPC you may try to superimpose the TRYX yields on those charts and you will see that higher rates lead the market by few weeks, we will see volatility and we may see higher levels on SPM but eventually the only way for market to sustain these heights is to have interest rates break 5.50 and heads lower, yes I agree that in absence of any action from Fed this is market corrective action as interest rates on longer end are determined by market sentiment as such this is also a kind of market 'fed', it kind of irons out excesses and hype, these very high rates in face of low inflation are acting as kind of brakes also, Mr. AG would not be a very sad person to see that market is ready to higher cost at long end, eventually that takes a lot of hype out of the financial market. These rates will head down as soon as it is determined that oil prices hike will not feed into system, in two months time we will see summer and lot of oil both hitting the market, the oil from non-OPEC countries as present prices encourage huge production and summer is also a traditionally low demand period, if productivity gains are to be believed we may be setting up for a good rally after these blips are over, for me this market has all the potential to over react to some news which may look inflationary and as such in this period one would do watch out for that action..

To: steve susko who wrote (26177)	5/12/1999 4:41:00 AM
From: IQBAL LATIF	Read Replies (3) \| Respond to of 50167

Look at this chart and concentrate on time between July and Dec 98, you will find that if you have comparison chart of this period only with little more clarity you would see that most of the drops to support at 890-900 were when apparently strong data emerged..although the rallies were eqully strong when it dawned that inflation in CPI or PPI is a blip one such ocassion was PPI of Oct 97// quote.yahoo.com^TYX&d=2ys