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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (1011)	11/15/2003 8:47:18 PM
From: Wade	Read Replies (2) \| Respond to of 48092

This is a good time to review the major market indexes. US Dollar Index - Keeps on trending lower. Most investors only paid attentions to Euro and Yen, but forgot about watching Canadian Dollar, British Pound, Australian dollar and Swiss Franc which all appreciated significantly vs. dollar in the last two years. Chinese Yuan is not included in the US dollar index (as I recall), but it will have a major impact to the world market and especially to the US and SE Asian countries. Dollar drops means investment money is flowing to foreign currencies and leaving the US markets. CRB Index - Surged to 7-year high which is not far from the all time high. The real panic will set in when CRB index keeps on climbing after breaking out the all time and closing highs of, 263.79 and 261.81, (April 25, 1996) respectively. Fed will be forced to consider hitting the brakes to reduce money supplies. No one knows this target but I doubt it will be higher than 275. 30-year bond index - the yield is still very low and attractive which indicated that there are still plenty cash available for investing because foreigners are forced to keep on buying US treasuries in order to keep their investment afloat. How long will this last? Last time when US dollar index at the same level, the 30-year bond yield was at ~7%. I expect the yield to rise to above that level because the added inflation pressure from CRB index. SP-500 - The short term direction is still bullish, however, the market will collapse when Fed is forced to raise interest rate. Or, the bond market will decide the direction for Fed. Gold and gold stocks are the most sensitive factors to this kind of major market crisis situation. We are facing major stock market melt-down and most of investors are unaware of this threat. I heard its footsteps loud and clear. I will keep on adding gold stocks, especially those US mining companies, because they have the best potential to appreciate, besides those speculative Canadian junior mining/exploration stocks. Good luck. Sncerely, Wade