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I saw somebody mention the other day that they were surprised how the
bond market was moving opposite to the NASDAQ. That should not be all
that surprising. Alan Greenspan has continued to show concern over the
wealth affect wrought by the stock market. The Dow is up 50 points from
its March 12, 1999 close. The S&P is ahead less than 10% from there and
sits below its July 1999 highs. That clearly says that it is the NASDAQ
that worries him. And since the only weapon he has is interest rates
(he's rejected margins), as long as NASDAQ keeps rallying, the risk
remains that he will keep increasing rates. As luck would have it, the
NASDAQ should fall 50% from about 300-400 points higher before the year
is out (oh, and 50% takes us to about the October 1999 lows). Buy bonds
from near 6.40% for a mega rally.
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Steven W. Poser, President
Poser Global Market Strategies Inc.
url: http://www.poserglobal.com
email: swp@xxxxxxxxxxxxxxx
Tel: 201-995-0845
Fax: 201-995-0846
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