US Rate Cuts
Pasting from another forum…..
Hello All:
I just wanted to do some research and confirm what ElliotWave.com site is saying.
See the attached 3 month T-Bill chart, and you will see it from barcharts.com Based on this, which seems to be a no-brainer, it looks like it is confirming that the Fed Funds Futures is predicting the correct move. I am sure the Fed Fund Futures is also trading in similar patterns to the 3 month T-Bill rates, hence it is able to predict a 50bp cut.
KKP’s Personal Opinion: A 50bp cut would be a huge cut for the US. This means that if Bernanke cuts 50bp, it will not be looked upon as a HUGE POSITIVE (2x as good as a 25bp cut). If he cuts 25bp, and then indicates that there is more to come from his goody-bag, then it will become a huge positive, and the markets in the US will take off, proving the Election year cycle in 2008.
http://customer1.barchart.com/cgi-bin/mri/vsnchart.htx?page=chart&sym=TBY00&data=E&showcc=yes
What do you guys think? And, more importantly, how will this impact BSE Sensex and Nifty? Should we be making any big moves here?
KKP
Princely Mathew wrote: > Hello, > I saw the following graph on the elliotwave webpage and thought it was great. > > The corelation is remarkable - So a rate cut for the next fed meeting should > almost surely come based on this. And it should be atleast 50 basis pts. > > Lets wait and see…. > > The full article: > http://www.elliottwave.com/features/default.aspx?cat=mw*aid=3336*time=pm > > Thanks, > Princely Mathew > __._,_.___
