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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Ron Pitts who wrote (45098)	11/16/1999 6:26:00 PM
From: Giraffe	Read Replies (2) \| Respond to of 116753

Hint? Yesterday we looked for investors to sell today's news of the quarter-point hike in rates. Looking at the stock market, that hasn't materialized (yet), but it certainly has taken place in bonds and the Dow utilities. Just prior to the announcement, the long-bond yield was an even 6.0%. At the moment, it has risen (significantly) to 6.08%. Despite hearing exactly what they wanted and expected from today's FOMC meeting, the debt market is no more clear about their future direction . Given this silver spoon, should we not be off to Dow 12,000 in a heart beat, and perhaps 5.75% in bond yield? Participants need another day to digest and see if their vision clears by tomorrow. And what is going on with gold and gold stocks? The metal rallied by almost a dollar (up better than $2.50 from yesterday's New York close) after the rate hike and gold stocks remained negative (although holding key support at XAU 70). It would appear that the passing of this Fed meeting has left as much confusion and uncertainty as there has been for several weeks. We suspect that the true uncertainty of this game is the uncertainty that 'a greater fool' will always be there to buy at an even higher price tomorrow. Keep in mind that in this window of best possible news for equities, only technology stocks are at a new high. There is no strong argument for this foolishness to continue. On the other hand, tight labor markets, recovering Asian economies, rising global interest rates, $25 oil and rising commodities prices are detrimental to paper assets. Better opportunities will arise and possibly as soon as tomorrow morning's CPI number. Buy Signals rarely assumes a position ahead of the release of potentially market-moving announcements.