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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (22585)	12/3/2002 12:00:54 AM
From: nspolar	Read Replies (1) \| Respond to of 36161

jw, call it a gut feel, I don't know, but I don't like the smell of the markets here, at all. It just kind of really got strong this evening, after looking at some charts. In the back of my mind I'm wondering if the hammer really hits, if gold equities take a hit as well. I think the dollar may have put in a major failure today. If so it could sink real fast. The Nikkei could have put in a double top this evening as well. As always time will show.

To: Jim Willie CB who wrote (22585)	12/3/2002 10:49:16 AM
From: isopatch	Read Replies (2) \| Respond to of 36161

<keep all three monsters under the table> Exactly. <The all powerful Oz> is vigorously pulling the levers behind the curtain. But, he always waits too long, then over reacts trying to compensate. This and the balooning leverage throughout the economic engine is increasing the boom/bust character of our economy. That in itself continually amplifies the effect of any error by fiscal AWA monetary policy makers. Prescription for serial train wrecks? Absolutely. A classic sector example of the unforeseen consequences of mad hatter monetary policy is the energy sector. Risk takers in the industry are waiting longer and longer into each uptrend in petroleum prices BEFORE they will put up $$ to drill aggressively. Of course, that exacerbates the amplitude of energy prices in both directions. And in a vicious circle makes the risk taker more gun shy with each successive cycle. Hence the liquidity the FED pumps into the credit markets flows more and more into the commodities themselves and less and less into the worldwide industry that's supposed to produce them. The economy is replete with comparable examples in other sectors. Isopatch