Saturday, June 24, 2006

Do not chase after your horse (5)

I chanced upon this report in this morning and would like to share it with readers. Extracts from CNBC Market Dispatches Jun 23 2006 4.40 pm ET:

"Markets may react calmly when the Fed raises rates next week. A big hedge fund is under investigation.

The Dow Jones industrials closed down about 30 points, or 0.3%, at 10,989. The Standard & Poor's 500 index was off 1 point to 1,245, and the Nasdaq Composite slipped 1.5 points to 2,121.

All eyes in the financial markets will focus next week on the Federal Reserve, which almost certainly will raise short-term interest rates on Wednesday afternoon.

Analysts say the stock market may react calmly to Wednesday's rate increase for two reasons:
All of the financial markets are assuming the rate increase is a certainty.
• The second quarter will end on Friday, followed by a long Fourth of July weekend. Volume is likely to be very weak both on June 30 and again on July 3.

The recent sell-off that started May 10 seems to have ended. In Tokyo, the Nikkei 225 closed June 13 at a low of 14,218.60, a 614-point loss. In New York, the Dow bottomed that day at 10,653.23, then rebounded more than 50 points at the close and added more than 300 points in the next two days.

Since then, none of the major indexes -- the Dow, the S&P 500, the Nasdaq plus major foreign indexes like the Nikkei -- have come close to testing the lows reached either on June 13 or June 14. The Nikkei, in fact, is up nearly 6.4% since June 13. The Dow is up 2.6%, and the Nasdaq is up 2.4%.

The Securities and Exchange Commission is investigating renowned hedge fund .... for possible insider trading, The New York Times reported Friday, citing government officials briefed on the case. Regulators are looking into 18 occasions of suspicious trading, the paper said. In one case the hedge fund made $18 million investing in companies that later announced a major merger." (One omitted the name of the hedge fund for obvious reasons.)

Even US market analysts now seemed to agree to what has already been predicted or indicated earlier in this series. (Crosscheck those sentences in bold to the past entries of the series and the entry on what will happen in the month of May.)

Perhaps by following this case study, even those sceptical about Yi divinations would change their minds about the Book of Changes?

Or perhaps they may better understand why the Ancients indicated that the Yi relates to Tao and why without going out of the home, they can foreknow world events. The mysteries of the Zhouyi and Tao are indeed profound. No?

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