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B4 the Bell Toozleday Aug 31, 2004


Guest yobob1

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GOLD: Gold comes into the session with a slightly bullish bias following the favorable            action Monday. Some in the trade are afraid to get short in the face of hedge unwinding by an Australian miner, while others see the Dollar reversal as a factor that could serve to boost gold above the last 5 days consolidation highs. With the $410.00 level a critical pivot point and the market poised just under that level, we have to think that the market will attempt to make a breakout.

 

Unfortunately the gold market will have to lug along a rather overbought small spec and fund long position, as the latest COT report showed the positioning to have ballooned. However, open interest has leveled out after a sharp rise for most of August and that leveling has coincided  with the recent consolidation under $410. Once the $410 level is taken out that level should become support with the next resistance level seen at $413.4. Somewhat soft US economic numbers could serve to undermine the Dollar and that could provide some light support to gold in the early action and with energy prices weak again this morning, we assume that the path of least resistance in gold is up

 

http://www.silver-investor.com/DailyUpdate.htm

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Dollar is falling and interest rates are as well. Seems like the reaction is that the economy is not gaining strength after all....LOL :( At some point, I think the Bulls will see value here....good entry oportuniity...so I think decline will be limited. Lets spin the wheel..... :P

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I just read that there are 20 factories under construction in Asia that will build flat screen tv's and monitors....factories are massive and will cost a combined total of $20 billion. Sure seems that the flat screem market is going to go the way of the airline industry..... B)

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heads up on INTC. Every hedge fund I know is short this stock in size. I think their business stinks and they may very well have no choice but to warn on Thursday. Still I am concerned about a short squeeze in this name.

Straddle?

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