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FYI
>From the The Path of Most Pain article at the Princeton site -
http://www.pei-intl.com/HMEFRAME.HTM
"Interest rate hikes are not always bearish for stocks. The Fed raised
rates 8 times between 1994 and 1998 and the Dow more than doubled.
The Fed doubled interest rates between 1927 and 1929 and the Dow
still
doubled. When the Fed raised rates into 1981 jacking the prime up
to
22%, the market declined, but it never crashed and burned. True, a
Fed
hike has its short-term effect. But a rate hike can also been seen
as
bullish for it will surely not be followed by another – as the
talking heads
would spin.
We do need one more correction. However, that correction can come
from either a new high or a retest of the highs perhaps going into
August
17th. Thereafter, the next correction phase should last longer in
time
than any previous decline. We would place this at a 5 to 6 month
interval. As Y2K begins to become an issue of discussion after the
summer, it may be time for a pause in trend. After the public sees
that
the world has survived yet another doomsday forecast, spring will
arrive
and with it a new bullish phase may once again emerge. The majority
of
trading professionals are all short the U.S. market. The majority
is
NEVER right and the golden rule inevitably still applies".
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