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Strategies & Market Trends : Fidelity Select Funds -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (153)	2/9/2003 9:30:34 AM
From: MoneyPenny	Respond to of 5019

to be used by growth in Chinese economy? Not an answer, just a guess. Sleeping giant has been awakened with a voracious appetite for everything?

To: Julius Wong who wrote (153)	2/9/2003 11:35:42 AM
From: Julius Wong	Read Replies (1) \| Respond to of 5019

Why industrial metals jumped in January? Why gold stocks are behind the price of gold? I don't know the answers. I'll give my readings and hope more people join in the discussion. On the first question, why industrial metals jumped in January? I think there are three reasons: 1. Strong housing market. 2. Strong automotive sales (helped by incentives, GM and F are selling more cars now. Don't worry about next year). 3. There are many ethnic Chinese (overseas Chinese) trading companies in Southeast Asia and other regions. They still follow the old business tradition, i.e., close the book before the (lunar) new year (in 2003, February 1st). If there should be 100 t nickel in the inventory, and by January 15 there were only 80 t, then the company must buy 20 t to close the book. On the second question, why gold stocks are behind the price of gold? The professional play intermarket spreading, long physical gold and short the hedging gold mining stocks (ABX and PDG). Then the amateurs followed the professionals. The amateurs long physical gold and short ALL gold stocks, hedgers and non-hedgers.