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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (2091)	9/21/1999 3:01:00 PM
From: Enigma	Read Replies (2) \| Respond to of 3536

A mouth with two sides - trying to convince people there is a Chinese Wall? If Armstrong is short gold and if his account is frozen - is he -------- bricks perchance? d

To: Hawkmoon who wrote (2091)	9/21/1999 11:49:00 PM
From: Sam	Read Replies (1) \| Respond to of 3536

More from PEI, this time market perspective and predictions. Needless to say, it is bearish: Martin Armstrong and all the people at the Princeton Economic Institute are grateful for your support. After we sent out the Press Release we have received a huge number of emails expressing support for Martin Armstrong and the Princeton Economic Institute during this difficult period. We hope that our advice of a week ago has served you well. At that time we warned you that stocks may begin a sell-off around mid-September. Stocks sold off today handsomely. The DOW was down 225 points. The S&P December contract closed today at 1321.90 and a weekly close below 1292.50 basis S&P Dec contract will confirm a correction which may take stocks back to their October 1998 Lows (a 35% correction from the the July Highs). The risk is clearly there. Watch closely to see how the S&P December contract closes this Friday. If it closes below 1292.50 (Dec), don't be looking to buy dips!!! The big event today during Tokyo time was the decision by the Bank of Japan NOT to increase the money supply. The consequences of this action are huge. As traders look back on what got things going in this stock market selloff, they may remember this action of the BOJ just as they still remember the actions of the Bundesbank in 1987. DLR/YEN continues to sell off as traders saw an unexpectedly large trade deficit combined with the BOJ refusal to increase the money supply as cause to sell dollars. And as the dollar heads south, so goes the US bond market and US stocks. As some point the currency losses by Japanese investors become just too much....leading to panic selling of US assets. But there are no winners in this game. The Nikkei will probably open 300 points lower and may not look back. (A stronger Yen is not particularly good news to Japanese exporters.) DLR/YEN could easily test JY 100 in the near future and although we don't see New Lows for the dollar against the Yen, we do see that the Yen may continue to strengthen until the BOJ begins to realize the foolishness of their current monetary policies. Once a more enlightened view emerges at the BOJ, look for the beginnings of a bull market for DLR/YEN that could carry the dollar to over JY 200 into 2003. You are walking through history at this very moment, whether you know it or not. Historians will look back at the mistakes of the BOJ the same way they look at the mistakes of the FED in the 1930s. The picture for US Bonds is a little more complicated. Japanese may be forced to sell US Bonds as the USD continues south and to cover losses on the Nikkei as it too heads south. But at some point a flight to quality by US based investors may cause bonds to rally smartly. See our daily reports for key levels to monitor.