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Nick's Picks Daily Update 4/20/4


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#1 TTHQ Staff

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Posted 20 April 2004 - 05:52 PM

THE NICK'S PICKS DAILY UPDATE
A Decision Point Publication
By TraderNick
As of market close 4/20/04


It wasn't Jericho, and Alan Greenspan didn't have a trumpet, but the walls
came tumbling down anyway.

The Fed chairman didn't really say anything to the Senate Banking Committee
today that was unexpected; the economy was picking up nicely, and any
corresponding pick up in inflation shouldn't be anything the banking system couldn't easily handle. But from the market's reaction you would have thought he'd shouted "FIRE!" in a crowded theater. After trading flatline most of the day, the Dow quickly barfed up more than 120 points. If ever a market session proved
institutional traders to be herd animals, today's was it.

Greenspan only hinted at interest rate hikes to come, but the market's
tripping over itself to price them in, yet one more demonstration of how things that used to take days and weeks to develop happen instantaneously in today's
cyber trading world.

As a result of today's panic, the Daily TRIN closed at 2.93, well above the
2.0 mark that so often signals a following day rally. Normally, I'd tell you to
look for a nice market bounce tomorrow. But with Mr. Greenspan scheduled to
flap his yap yet again tomorrow, all bets are off. All you can be sure of is
that the fund jockeys and hedge fund cowboys will respond in moronic fashion.

Not that I'm cynical or anything.

[The rest is reserved for Subscribers]

Trade well!
TraderNick