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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (33725)	5/18/2000 5:23:00 PM
From: double-plus-good	Read Replies (1) \| Respond to of 42523

Heinz, amidst a general discussion of gold over on the SI drilling thread, the following comments from James Smith at PEI were referenced. Pretty bold predictions of a real washout sub 45 in the XAU. Now that's dire... Couldn't help but wonder what Soros might get up to with all his freed up billions. If he is as smart as he used to be, he might be able to redeem his lost billions as well as add a few currency scalps to his stash. I can imagine how ironic it would be if he became a scapegoat for a collapsing dollar. Hated at one and the same time by Mahatir Mohammad and all clown-bux loving americans. Would be quite a privilege if you ask me. In any event he has pretty good cover to try something sneaky now that everyone has written him off as a doddering pension fund manager and out of step former speculator. Let me know your thoughts on the Smith passage... From James Smith of PEI on GOLD !!! Some have wondered why I have gone quiet on gold. I haven't gone quiet. Anyone who pulls up a daily report will know our view on gold hasn't changed. Reminder: gold elected a weekly (at 277.1) and a monthly (at 278.0) bearish reversal on April 28th. Since then gold experienced a short-term reaction rally in sync with the panic cycle week at the beginning of May. It would now appear that the short-term rally has run its course, and the real move--consistant with the election of two important longerterm bearish reversals--is about to take place. Those who think that now is the time to buy gold because stocks are experiencing some volatility or because inflation is rearing its head, are fooling themselves. The XAU (gold/silver index) plunged today on its way to test 48.67. I personally don't believe 48.67 will hold. When this final critical support level gives way, so will a whole mess of gold bugs who are currently deluding themselves into buying more gold stocks. The proverbial fit is about to hit the shan. The true believers in gold must be wiped out before we can begin a secular bull market. This is the "golden" (??) rule of the Marquis de Sade School of Economics: Apply pain til the victim can't feel any more....wait a bit...then... apply more pain. But don't be excessive in your application of pain until you are sure your victim is played out. Then deliver the death blow. Then find another victim. Having stated the "golden rule" of the Marquis de Sade School of Economics, I wonder where on this planet the markets are going to find a replacement for gold bugs once they are well and truly played out. Show me another market in which investors will stick with a losing trade for 20 years!?? Gold bugs have been on the rack for 20 years. You'd think that's long enough, but I got a flurry of emails over the last few wks from gold bugs arguing that "now's the time to buy!" This made me very happy....it confirms our view that gold is going down!!