To: d:oug who wrote (3746 ) 8/2/1999 6:18:00 AM From: d:oug Respond to of 4066
of Bulls & Bears & Caves & weened(not weaned) & to whack A copy of a post on another thread by a young very smart guy.* ** * (I have no opinion if its babble or good stuff or just a joking.) ** (Don't click on link in the post unless you know your money stuff.) Talk : Gold/Mining : Gold Price Monitor From: Hutch Sunday, Aug 1 1999 In my opinion: The easiest way to find a bear, you should first look in the caves. If you can catch one asleep, then you can easily take aim. Within the economy, caves abound. But caves must be dug into something, whether it is debt, monetary policy, and political policy. In Sept 86 the M2 MACD hit a relative high. That makes for many caves for bears to hide in, but doesn't make them come out. What wakes a bear up is when the FED comes by and startles them; by whacking them with a rate hike stick. But only bears that have been dozing are startled. Some have been wide-awake and will rear their heads and stand up. But won't move their positions outside the cave. So what is the difference? Bears are hungry, always. You feed a bear with lower yields, the more you feed him the more he eats, the stronger he gets, but won't come out of the cave to forage. As rates come down, the DOW bull climbs. But when times get lean, and you feed the bear less, he'll attempt to eat the DOW bull. {Short the markets} So how do you awake a bear? You raise rates while the bull is climbing, and the yields are falling. This shows that the market was missing something. Then the bull becomes the meal. But as of now, we have the yields rising in advance of the FED hitting with the stick. So the bears are all awake, and clambering around in the caves. But none have stuck its head out. Many hunters are outside, pointing there guns, and ready to fire. {Sell on mass} But the FED isn't sure yet. The FED gives the appearance of running around chasing statistics. Yet many of the spastics are the direct result of previous Fed actions. So to call the kettle black in advance of the Fed painting it is wrong. Many here suggest CPI is a measure of inflation when it ISN'T. But yes inflation may very well be on the up tick, but a deep look into the M2 suggested that the Fed has illuminated M2 exuberances. I've been of the opinion that inflation was always here, and that M2 hides inflation back in the caves. Lower the M2 rate, and the inflation becomes visible again. The bear is being weened {not weaned} slowly of the Bull. members.home.net This means that the Dow should trade within ranges between the Fed meetings until a substantial inflationary trend is created. If the fed continues to whack the bear in the cave, they'll come out to munch. Hutch Next Previous