20060613 Capitulation on the cards.

Don't be hoodwinked by the latest market turmoil. The fear expoused by analysts and commentators is that the Fed will raise the FFR further to contain inflation. This is not true. In 2001, when the FFR was at 1.25%, the S&P500 was at 880. Now with FFR at 5%, the S&P500 is currently at 1235. Any fool can see that as interest rates rise, the stock index rose, giving a positive correlation, so what are they fearing? Their own shadows I figure.

E-mini S&P 500 chart