"Yes, the FED has been pumping but they have been pumping for a long long time...yet rates have continued to come down. When does it all come home to roost..."
Don't know who wrote this BUT: If we are to assume that the USA was entering into a deflation state as so many are suggesting, than the pumping of money into the system will be assorbed. So that deflation will be cancelled out by inflationary pumping. And this does not fare well for GOLD, or gold stocks. As Growth, {difference between monetary inflation, and consumer inflation} can expand at a rapid rate. And this will have the effect of raising the US dollar relative to lower performing currencies such as Mark, Pound, and Yen. And at the same time lower GOLD. So the pumping is not YET of any importance, BUT should it continue as growth rates decline than you'll enter a inflationary ramp.
TA is very important, and you can trade off the data collected. As TA usually trades above the fundamentals data. And once you know this you can actively trade in the regions between those whom believe a stock is over valued, and under valued. No one indicator is the be all end all, but many are lagging reporters. I have my favorite, and many I use to pick and choose options. I do, attempt to:"predict that stock X will be at price Y at point in Time Z." Cause without such predictions, how can you tell when to get in/out of options? And I do have a very good degree of accuracy. Time is the hardest thing to judge, not price. And when government interfere into market places it prolongs time. It's my opinion that ABX and Gold will decline from tuesday {posted} to a low in DEC, but timeing required me to buy the Jan puts... |
