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Strategies & Market Trends : Classic TA Workplace

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To: pater tenebrarum who wrote (25260)12/16/2001 10:38:02 AM
From: sun-tzu  Read Replies (1) of 209892
 
have heard some talk about a possible deal between the treasury dept and japan. japan would buy the long bond in size which would 'temporarily' bring the bond yield more in line with a stimulative number while sufficiently devaluing the yen. thus, an economic stimulus is provided for cheap, japanese goods.

of course this won't work in the long term as a deflationary dominoe effect for other foreign currencies would hit american corporate profits hard as the dollar is the benchmark. nonetheless, there are a number of other events that in the short term could provide the appropriate market psychology for a continued move up.

1)end of year fund chasing performance ramp
2)OBL death
3)economic stimulus package
4)the thought(mistaken of course) that the worst is behind us.

nontheless, i agree there is more room for upside. i also agree that the shorting opportunity awaiting will be epic and singular. in the short-term, i think the market will perform and gold is at risk. however, i think the feb/march timeframe at this point, is dead on for a broad and steep equities decline with concomittant gold ramp.

regards,

st
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