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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (37662)8/3/2005 1:49:21 PM
From: ild  Read Replies (2) of 110194
 
Date: Wed Aug 03 2005 11:34
trotsky (@pm stocks) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
if today's move is sutained, the HUI/Gold ratio will move further away from the danger zone.
in spite of a recent surge in call additions in the sector, sentiment can probably still be classified as 'neutral' overall, as WS analysts are not exactly enthusiastic about gold shares, and the Rydex pm fund has a lot of room for additonal inflows in the wake of recent drawdowns.
this combination of renewed technical strength plus neutral sentiment could suffice to propel the sector out of the recent trading range.
the biggest danger at this point is the Fed's apparent willingness to keep jacking rates up until something breaks.
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