Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Second_Titan who wrote (80678)	12/4/2000 12:42:14 PM
From: SliderOnTheBlack	Read Replies (1) of 95453

XAU/Gold's move continues this am - it's an omen folks... XAU up 20%, HM up 50%, NEM 25% off their lows; run NEM run ~ Naz, OSX, XNG comparison Chart to XAU since Oct... siliconinvestor.com If Gold continues to move; it's not a positive for the broad market recovery. I think the XAU move is because the US Dollar "must" and is going to significantly correct and has allready started to do so. Rubin & Greenspan backed the US Dollar into an obvious "Catch-22" Trap - cut rates to resuce the market, or to soften the landing & the US Dollar falls & Gold rises. Don't cut rates - and keep King Dollar at these levels & the stress fractures in foreign economies & currencies guarantee's an "event" that will rock the market & propel Gold into a speculative flight to safety move - King Dollar can not & will not remain here with our present account deficit. Foreign investors will not continue to hold debt laden US Dollars - especially not with an imploding equity market and a GDP that when it falls under 2.1% evaporates our surplus... our account deficit ramped last month - the Dollar is going to correct significantly & watch the Euro - they were stupid like a fox... ... the Gold Mining small caps - non XAU Components are still lagging - still screaming buys.... Nat Gas... playing the commodity itself via futures would have been the play obviously vs. the stocks. I still say any "weather" realated significant NG stock breakout is a selling & profit taking event AND a shorting opp - be forewarned... it's an anomaly within a subsector that is not contolling its own destiny. Also; it is becoming apparant that the Election has less to do with the broad market weakness than many think it does; a factor yes, but not the significant one. Valuations are still way, way too high; earnings are coming down, the economy is slowing and has significant underlying internal fundamental problems - big ones... credit quality, derivative over-exposure/leverage, reckless consumer credit expansion, imploding-default rates in corporate bonds etc. Still a "red light" flashing and the yellow aint anywhere on the horizon. A tradeable "bounce" rally in Nat Gas, or some OSX stocks yes; but "Tradeable" is the keyword - as even "short-term" Hogs get slaughtered occassionally. The $64 question's remain; can the OSX rally to new highs against the weakness-correction/danger in the broad market ? and; is the risk vs reward of merely "re-trading" a range that we've allready - "been here & done this" - with, about 4 times; worth it ? or; can & is the OSX going to new highs here ? ... Watch the US $ & watch the Gold stocks...

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next