Michael Cloherty Quotations

Yesterday, the Fed's effective funds rate, the average of the funds rate that exists throughout the day, was 1.25 percent, way below their new 3 percent target. Today, it's even softer than that, below 1 percent.

The real has been the main factor behind this rally.

There is a lot of following stocks around today. That was the big thing after the huge decline in the European equity markets - there was a lot of nervousness about what would happen in the U.S.

Greenspan is speaking tonight and it's a matter of some concern that he could surprise people.

Tomorrow the employment report is going to take over. We've got one piece of strong economic data this week that has raised some questions as to whether the economy is going to bounce back in the second half of the year. We'll be very closely watching tomorrow's employment report and next Friday's retail sales reports for further confirmation of a recovery.

Yields have cheapened up, but if the Fed's going to go further, they still may not have value at that level.

The only thing (to drive Monday trade) is the question of whether there's much setup left for tomorrow's Humphrey-Hawkins.

Bonds are looking at equities. The equity market has stabilized after yesterday's tumble and the auction lends a negative backdrop because the market has to absorb more supply.

At these prices right now, people are saying the Fed is going to have to do more to bail out the system for investors to take on leverage again.

Concern about deflation makes bonds look good relative to stocks.

The statement was that it markedly diminished the risks of inflation picking up. So, you know, a very positive statement from the Fed. But I think that, still, the risks are that the economic data could come in a little bit stronger than expected and force the Fed's hand one more time.

You should see bonds trading a little bit higher on this because there's a bit more slowdown in it than we were anticipating.

It's an extremely strong start to the first quarter. We've had pressure on the market for a while. This maintains that pressure.

The underlying news is suggesting some continued strength in the economy. There's nothing to suggest any change from the Fed. Rates are going higher.