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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: ItsAllCyclical who wrote (19731)	1/5/2005 10:08:35 PM
From: The Vet	Respond to of 108625

As usual the market is showing it's prejudices rather than trading on logic or value. A quick look at this chart should convince anyone that any damage the slight drop in gold has done to the SA gold miners in the past week has been more than compensated by the substantial weakening of the SA rand, the strength of which was the cause of the SA's swoon in the first place. The markets are being run by the hedge fund momentum players in a game of musical chairs where they all dance around gathering their favourites until the music stops and then they push and shove each other aside to dump their illogical positions bought at unrealistic prices to seek haven on the nearest "safe" chair regardless of logic or the cost... All TA and no FA... A self-fulfilling system that works fine, but only for as long as enough of the believers trust it.... It is just another form of manipulation where all they pile in and all pile out in synchrony. They buy some stocks and sell others just because that's what they are all doing and so the TA becomes the driver, not of the stock value but of the moves of the uninformed crowd. Eventually value and logic must in the longer term bring back some balance. quotes.ino.com