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Re: Joe Stocks post# 402916

Tuesday, 06/21/2005 7:24:23 PM

Tuesday, June 21, 2005 7:24:23 PM

Post# of 704044
Joe a follow up.....take a look at the historic market action when the Fed goes neutral through the first 2-3 rate cuts. Dramatic. Now......the market usually takes a dive towards the end of a tightening cycle before neutrality. Thats what happened in late 94 also....after a spring low and subsequent rally (as we also just experienced this year). If this theory holds, we should have a jittery market with a late summer dump and that could be the entry for a solid rally thereafter with an accomodating Fed. All imo, and outside (political?) events certainly could mess this up.

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