Tuesday, June 21, 2005


The daily chart you see above shows the bear market boxes in the Eurodollar contract. These boxes are 48 ticks high and started from the 2003 high at 99.09 in the December 2003 contract.

I still think the market has a good shot at 96.45, the 1/2 point of the next higher box. This would correspond to a situation in which the markets believed the Fed would pause in its move toward higher short term rates. I think such a pause will occur this summer and early fall.

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