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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (52841)	6/6/2002 10:28:29 PM
From: T L Comiskey	Respond to of 65232

To:Finallythere who wrote (75707) From: Zeev Hed Thursday, Jun 6, 2002 9:24 PM View Replies (1) \| Respond to of 75728 There are two issues with gold, the very short term (next three weeks or so) and the intermediate term, the next three to six months. In the next three four weeks, I see next week as negative for equities, at least until the middle of the week, and gold retesting the high at $330 (and possibly breaching it a bit) with the stocks following. The next down phase in the market, starting either late next week, or possibly as late as the Tuesday thereafter, should be the last phase in the nassacre, and during this phase, I expect a lot of strong equities, including gold, to be beaten. It has nothing to do with the intrinsic value of these stocks, it is simply panic spreading, and sometimes, margin calls due to positions in techs forcing sales of the gold and other stocks. If the end of June indeed marks a major bottom for equities (at least for few months), during such end stage, many unrelated equities feel the brunt of the general market malaise. Since the gold sector had stellar results in the last two month, it will be an easy target to raise funds from. Thus my expectation that very short term, we have a bounce into next week and then a drop with the rest of the market. Medium term, the intrinsic reasons behind the move in gold, the weakness in the dollar, is not going to go away, thus for that time horizon, gold will once again shine. If we indeed get the early July run I expect, gold should be side stepped, but by the beginning of August, I believe its shine will resurface. I trust this translation from Gipsyan Hungarian is a little clearer. Zeev