General’s Lieutenant Strafes Financial Futures

  • February 15, 2001
  • Marc Dupee

Echoing Central Bank Chief Alan Greenspan’s comments this
week to the Senate that the economy is not as bad as the market has discounted,
Richmond Fed President Alfred Broaddus said Thursday in remarks at a college in
Greensboro, N.C. that pundits have portrayed a “darker picture” about
the economy than is actually the case. Broaddus also commented that the economy
will improve in the second half of the year. 

March federal funds futures
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accurate forecaster of likely Federal Reserve interest rate moves, fell for a
fourth day, pricing in a reduced probability that the Fed will cut rates by 50
basis points at its March meeting.


10-year notes
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New 10-Day Low List, sank and made good on an Off The Blocks
 setup, a trading strategy that takes advantage of short-term momentum. T-bonds
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also hit a 10-day low and are off a full point at 103 1/32.

March dollar index futures
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against

euro FX futures
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interest rates. The perception that the US economic slowdown will improve
quickly–Greenspan said some of the Q4 slow down was due to weather, which in
November and December was the coldest in recent history–is improving dollar
sentiment. The ECH1 is down .01400.
Swiss francs
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Greenspan also commented that technology investment is
likely to increase in coming years, giving the thumbs up to tech fund managers
to continue buying. Raised performance guidance at Ciena
(
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the Nasdaq 100 futures
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gains. 

As the dollar strengthens, April gold
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the measured move objective of 260.0 of its fractal pattern described in earlier
recaps and alerts.