FeedFool Posted May 26, 2006 Report Share Posted May 26, 2006 Look like I am not the only one......... Understanding the Gold Bull We think the gold bull market that began during 1999-2001 is widely misunderstood, even by some of the most avid gold anal cysts-- To illustrate the idea that an increase in liquidity has been the major driving force in the markets in recent times we've included, below, a 3-year chart comparing the stock price of investment banking behemoth Goldman Sachs (NYSE: GS) with the gold price. We've chosen GS for this comparison because this company is supposedly the 'ring leader' of a cartel that is working to suppress the gold price and is, as a result, heavily short gold. Notice the positive correlation between the two entities and the fact that the upward acceleration in the gold price that began last September was accompanied by an upward acceleration in the price of GS. We seriously doubt that GS benefited directly from the higher gold price, but the fact that these two investments have moved in lockstep supports our view that a general rise in liquidity has been the primary driving force in the markets. Link to comment Share on other sites More sharing options...
Tchaikofsky Posted May 26, 2006 Report Share Posted May 26, 2006 TE: First of all, good to seeya back here! Seconal, I post the Barfing.com update here every day I'm around to do so. I believe it offers a combination of "what are people being fed by MSM" and enjoyment from the occasional rants that it induces in Doc. Turdly, I also think that we are bouncing and will re-test the lows. Although nobody running the Matrix has checked in with me for some time now. Tchai, The fact that we have been rising the last two days on less and less volume then when we sold off should be construed as bearish for at least a drop early next week if not a full retest of the lows. Windy, Robert Plant singing Gallows Poll on that AOL site. Tanks again http://music.aol.com/videos/sessions/sessi...S00050000000021 <{POST_SNAPBACK}> Link to comment Share on other sites More sharing options...
The End Posted May 26, 2006 Report Share Posted May 26, 2006 Black dog is sung as well. Kool. He still rocks! Link to comment Share on other sites More sharing options...
wndysrf Posted May 26, 2006 Author Report Share Posted May 26, 2006 Silver stocks are still trading like dead dogs. Must mean that another hard shank to $11 is in the works on the silver contract before the uptrend resumes. Link to comment Share on other sites More sharing options...
wndysrf Posted May 26, 2006 Author Report Share Posted May 26, 2006 Tchai, The fact that we have been rising the last two days on less and less volume then when we sold off should be construed as bearish for at least a drop early next week if not a full retest of the lows. Windy, Robert Plant singing Gallows Poll on that AOL site. Tanks again http://music.aol.com/videos/sessions/sessi...S00050000000021 <{POST_SNAPBACK}> Thanks, TE Link to comment Share on other sites More sharing options...
FeedFool Posted May 26, 2006 Report Share Posted May 26, 2006 Could you imagine trading 2 billion dollars...... Portfolio was down 20 million today. Barely moved. Lets go golfing.... <{POST_SNAPBACK}> Be careful what you wish for If the Dollah implodes and Gold gets called in, you'll be buying coffee for a couple thousand, until the dollah is replaced by the American Peso, Real or something. <{POST_SNAPBACK}> I don?t think Dollar is going to implode, .yes, its heading south but others countries are printing twice or three times faster then the fed. Its that liquidity which will drive the market higher. Link to comment Share on other sites More sharing options...
The End Posted May 26, 2006 Report Share Posted May 26, 2006 http://music.aol.com/videos/sessions/sessi...S00050000000021 Matisyahu, an orthodox jew reggae artist. He's pretty darn good. Link to comment Share on other sites More sharing options...
Jetlag Posted May 26, 2006 Report Share Posted May 26, 2006 Could you imagine trading 2 billion dollars...... Portfolio was down 20 million today. Barely moved. Lets go golfing.... <{POST_SNAPBACK}> Be careful what you wish for If the Dollah implodes and Gold gets called in, you'll be buying coffee for a couple thousand, until the dollah is replaced by the American Peso, Real or something. <{POST_SNAPBACK}> I don?t think Dollar is going to implode, .yes, its heading south but others countries are printing twice or three times faster then the fed. Its that liquidity which will drive the market higher. <{POST_SNAPBACK}> It was a rhetorical proposition, although pictures of ex-soviet block citizens carrying piles of worthless paper to buy a loaf of bread spring to mind. And this is a bearish board right? just checking... Interesting GS vs GOLD analysis btw, I don't believe gold kooks/bugs paranoia about the huge short gold trades. Although I do think gold's rise is more than liquidity and it didn't start in 2001 as stated by many, it started in 2005 when gold got higher against a basket of currencies and lost the correlation (close to -1) with the dollar. Link to comment Share on other sites More sharing options...
cwd Posted May 26, 2006 Report Share Posted May 26, 2006 There was no closure on Gold, butt Copper did go up and is approaching new highs. If it breaks 400 ... LO fornicateing A <{POST_SNAPBACK}> It will be interesting to see how much of the short position was covered on the short time sell off. Somebody must be off base somewhere. Somebody out there likes copper a lot, this does not remind me of 1980. Link to comment Share on other sites More sharing options...
DrStool Posted May 26, 2006 Report Share Posted May 26, 2006 By Poopular Demand! NEW! Unbundled WSE Pro subscription services at reduced prices. Get the Precious Metals Package FREE with any other service package if you join this weekend. Link to comment Share on other sites More sharing options...
wndysrf Posted May 26, 2006 Author Report Share Posted May 26, 2006 Toppy Link to comment Share on other sites More sharing options...
wndysrf Posted May 26, 2006 Author Report Share Posted May 26, 2006 Finally turning up Link to comment Share on other sites More sharing options...
cwd Posted May 26, 2006 Report Share Posted May 26, 2006 Could you imagine trading 2 billion dollars...... Portfolio was down 20 million today. Barely moved. Lets go golfing.... <{POST_SNAPBACK}> Be careful what you wish for If the Dollah implodes and Gold gets called in, you'll be buying coffee for a couple thousand, until the dollah is replaced by the American Peso, Real or something. <{POST_SNAPBACK}> I don?t think Dollar is going to implode, .yes, its heading south but others countries are printing twice or three times faster then the fed. Its that liquidity which will drive the market higher. <{POST_SNAPBACK}> It was a rhetorical proposition, although pictures of ex-soviet block citizens carrying piles of worthless paper to buy a loaf of bread spring to mind. And this is a bearish board right? just checking... Interesting GS vs GOLD analysis btw, I don't believe gold kooks/bugs paranoia about the huge short gold trades. Although I do think gold's rise is more than liquidity and it didn't start in 2001 as stated by many, it started in 2005 when gold got higher against a basket of currencies and lost the correlation (close to -1) with the dollar. <{POST_SNAPBACK}> Is silver going to be called in or will it be worth anything? Link to comment Share on other sites More sharing options...
wndysrf Posted May 26, 2006 Author Report Share Posted May 26, 2006 The last time we experienced two back to back days where the 10-day Put/Call ratio was at 1.20 was here. The 911 lows. Bears were heavily short in late August, gaming a breakdown. They piled on once the selling accelerated. After the 911 attacks, when the markets re-opened, they really started pyramiding. By the time the lows were reached, the bears were pretty much "All In" Afterwards, the market rallied up about 20%. Not bad, considering we were in a bear market back then. Link to comment Share on other sites More sharing options...
wndysrf Posted May 26, 2006 Author Report Share Posted May 26, 2006 Then, of course, the market rolled again. But that was too easy. PigMen pulled off that fantastic "March Madness" rally, which cleaned out all the bears. Then that set the stage for the Epic Collapse into the July 2002 lows. Link to comment Share on other sites More sharing options...
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