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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Denney who wrote (17158)	6/13/1999 3:40:00 PM
From: bobby beara	Read Replies (2) \| Respond to of 99985

Bruce, it may very well be headed farther south, but i would be carefully looking at anytime for a significant reversal, with sentiment getting this lopsided and the charts in the capitulation mode. central bankers may end up buying it back at higher prices -g- coin sales are very high, the public isn't all that stupid, they know that gold is the ultimate currency of last resort, and has not become irrelevant like so many analysts will tell you. Which is by the way perfect bottoming sentiment. central bankers are trendfollowers and fiat currency is in right now, but we all know how good fiat currency has worked over the last couple of years -g- and we are being again reminded of it with the recent news of more possible hedge fund baffonery. I was just studying a semi-log s&p 500 chart from 1962, interesting parallel channel study off the 1976 and 1987 tops which intersects the 1997 indecision pattern (when Barrons had the 1987 chart comparison on the cover), we'll call this the overvaluation side, drag the parallel line down to 1982 and we have never revisited that bottom channel which we will call the undervalued side and I don't want to tell you were we would have to go to visit -g- If this channel is a correct study, we are now out side the channel and in the buying climax or exhaustion phase, whether the buying climax is happening now or within the next few years is anybodys guess, but notice how heavily the volitility has increased since we touched that channel in 1997. bb