To: Paul Shread who wrote (28986 ) 1/31/2002 5:22:55 PM From: Roebear Read Replies (1) | Respond to of 52237 Paul, Don't need any terrorist attacks for gold, that brings out the PPT anyway to depress gold plus makes PM traders look like vampires. Instead I believe I can happily state that XAU/HUI stocks are responding to the evidence outlined so well in isopatch's post. The choice is simple, US is facing deflationary forces that threaten the whole house of cards, there are no options but to print $$ and hope for the best. Well, not print $$ exactly, even Joe Six Pack is going to understand soon that they just create those Dead Presidents out of the Electronic Ether and deposit them in decimal form in someone's Electronic Ether account. So much more environmentally friendly that way, not wasting ink and paper, ggg. XAU/HUI is approaching a virtuous cycle, the flip side of the last twenty years, where come deflation or inflation, the stocks that compose these indexes will flourish. Inflation will be the preferred venue compared to deflation, IMHO, because a country of debtors cannot withstand deflation. The only caveat is if globalization is too strongly deflationary to resist even Easy Al's best efforts, but even so, it's still a likely win win situation for the precious metals. Shooting stars yesterday on the XAU/HUI are likely, but not yet certainly, negated, reminding chartists the shooting star pattern needs confirmation with the third stick. It is also likely that the nearly perfect H&S pattern, formed on the HUI during Aug-Nov was a continuation pattern. Another thing chartists need to remember, that the H&S can be a continuation pattern. BTW, I am thankful I was able to re enter positions in AEM and SWC today near intraday lows. I believe AEM went through this same kind of (convertibles) news a few years back and it was a short term effect. Any AEM followers want to aid my memory, feel free. Congratulations on your positions, you manage them very well, Roebear