Hank Paulson's Rubinesque Dollar-WHODATHUNKIT?!?
Goldman Treasury Secretary Dollar-Deja Vu all over again?
As noted in my earlier post, the first pillar of the
bullish gold thesis (the Oil:Gold ratio) has just collapsed.
Here's a look at how the 2nd pillar to the gold bull
thesis is holding up -- "The collapse of the US Dollar."
....Goldman Dollar Deja Vu?
Back in May I talked about -- New Paradigm Shifts.
Remember "the most important chart in the market?"
It was the chart of President Bush's collapsing approval rating.
Do you see the internal revolt presently occuring within
the Republican Party? McCain, Warner, Hutchison turning.
The "old guard" is taking control behind the scenes.
But, does it even matter any more?
If it is -- "too late"...are you already
positioned for the Demo's taking back the House,
maybe even the Senate? And what about November 2008?
When will the market begin to price that in (if they're
not already)?
And just in case you haven't noticed -- Bonds, Cash
and the US Dollar have all trounced commodities since May.
-- whodathunkit?
Remember my mantra -- Trillions Trump Billions?
Well let me introduce you to my little friend:
Goldman Sachs: a.k.a. -- the tail that wags the Fed dog.
Hank Paulson bringing back the Rubin Deja-Vu Dollar
just when everyone on planet earth -- was on the other
side of the trade.
Did you notice something else that started earlier
this year? Did you notice all the talking heads that
were paraded out on CNBC touting the coming
(NEW PARADIGM) shift into DOW/Mega Cap stocks?
I don't know how you could of missed it?
The Fundies sure didn't.
On the day of the DOW's record high this week ...
25% of the DOW's entire move occured in just one
single stock -- Boeing/BA.
Even the PPT is getting smarter.
So what's a dazed & confused momentum trader to do?
-- Jump on the DOW rally?
-- Call yet another bottom for oil, or gold stocks?
-- Climb on board for another ride on the NAZ-Train?
-- Hide in Healthcare?
Or, bunker down and keep holding on tight to
the commodity stock bag?
Oh, by the way...
The best is yet to come!
Do you recall my mention of the $250,000.oo
presentation/pitch that was being made to the
offshore hedge funds earlier this year?
The recent market action since May has seen
the first four of their seven thesis points unfold.
One, two, three, four... little Indians.
Numbers five and six are aligned right now.
If number five falls...number six will make you rich.
You can't handle the truth...let alone number seven.
So don't even ask.
Later,
SOTB
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