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In a message dated 5/10/00 8:14:46 AM Eastern Daylight Time,
eadamy@xxxxxxxxxx writes:
<< The markets are a very effective discounting mechanism and certainly
have factored in a 0.5% rate increase, in fact the fed funds futures are
indicating further increases totaling 0.5% by Jan01. I do however
believe that exuberant investors have not adequately discounted the
overall effect of 2% in rate increases through May and 2.5% through
Jan01. I think we will continue to see very choppy sideways to down
equity markets until there is evidence of interest rate decreases. NYSE
model is on sell, NASDAQ model is near sell, and SP is likely to break
the TL support I mentioned in a previous post.
Earl
----- Original Message ----- >>
Good morning
NASDAQ and SP are SHORT term oversold
I do expect a small rally from tomorrow's low of about 20-30 SP points
and 100 -150 ND points
this will be a dead cat bounce and should only be used to get out of any
longs you still have,
Bob gross of pimco (3 years # 1 money mgr. of bonds) see bonds trade
3-9 month 6- 6.5%
(which does not bode well for equities)
Best regards,
Ben
p, s McCllullen went under 0 yesterday
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