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I agree that there are expectations of a rate cut.. I don't see it coming.
I have been seeing headlines lately of Fed activity like this article:
http://biz.yahoo.com/rf/980923/nv.html
I am wondering if they are doing their best to provide as much liquidity
to the banking system with out lowering rates yet. Also Greenspan has been
very consistent with how he tips his hand with respect to rate hikes, cuts
and leaving rates unchanged. He has not showed any signs as far as I can
see that deviate from the current stance of a neutral fed bias. Lastly I
would say that Greenspan will be talking about the current world economic
conditions. Which I think might scare a few more investors who have not
believed that the world economy was really in a crisis.
Harley
Bill Saxon wrote:
> Apparently the market thinks Greenspan will weasel around and innuendo
> a rate cut in the near future when he speaks to Congress today. My
> experience is that the market usually goes down when he opens his
> mouth. I think today will be no exception. All of the major Indices
> are at or near heavy overhead resistance. It seems the odds favor a
> bounce off and another leg down (# 5?). Any comments?
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