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Non-Tech : The Critical Investing Workshop

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To: RR who wrote (26268)7/22/2000 8:19:52 PM
From: Jim Willie CB  Read Replies (5) of 35685
 
Ranger Rick,
congrats on your recent deepmoney longterm options
they are all kicking major glutes
I would like very much to hear a reply to the following premise and discussion linked on money supply

the best prognosticator for NasComp is the US money supply M3
I saw a recent chart of NazComp versus the M3 money supply
the M3 tracks perfectly with the NazComp
the M3 leads by a few weeks or so the NazComp index

Money Supply is given minimal importance or consideration
the M3 has dropped sharply for weeks
it is controlled by the Federal Reserve
eveyone acknowledges the Fed controls overall interest rates
that is the price of money
almost nobody acknowledges the Fed controls the flow of money also
price and quantity (interest rates and money supply)

check the following link, which Mullineaux provides on his Buffalo Roam thread:

Message 14090090

all signals are pointing toward a climax selloff in lateSept/ earlyOct timeframe
Greenspan in my opinion deflects attention away from Money Supply focus, and toward CPI and GDP, which are both lagging indicators
the stock market laps up Gspan's dogma like a dog

the key is money supply, which is like bloodflow to the stock market

I would appreciate your comments, and anyone's more current chart via website of M3 Money Supply
my latest chart is several weeks out of date, and on a newsletter
some have in the past denigrated my comments about Money Supply, calling money an undefinable quantity in today's age

hang onto your 'nads a few weeks after the annual LaborDay rally
keep your powder dry as we get INTO September
/ Jim Willie
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