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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (11867)	4/27/2005 11:22:55 PM
From: loantech	Read Replies (3) \| Respond to of 18308

Very interesting read posted on Russ's thread. As far as I’m concerned, the best description of current market activity came yesterday from Mark Pierce III (a.k.a. “Marky Mark”) when he wrote the following: “Trading Chaos: Markets on Acid” “With the 4/30/05 "Statement Print" approaching, and 9000 HedgeFunds trying to "make their month," the stock market has degenerated into total trading chaos…. Casino stocks and homebuilders breaking out. One semiconductor stock (ALTR) breaking out, while the rest languish. Steel stocks crushed. Oil stocks, banks, and REITS relatively unfazed. With some stocks, it's "Breakout City" and with others, it's "Clothesline Central." I've attempted to predict some type of short squeeze, an orderly bearish flag consolidation, or some other normal and typical pattern. But it seems impossible. Gaming individual stocks has become a complete joke. Gaming the Index ETFs has become futile, due to the slow movement and erratic trading. After hours action is even worse. Every night, there are some spectacular blowups, accompanied by maniacal squeezes in the most unexpected areas. In a nutshell, its a scene where HedgeFunds Have Gone Mad, and nobody is making any money except NYSE and ARCA. No wonder there is such a huge cat fight to buy that operation. A virtual money printing machine. How much commission income is being generated these days, compared to 5 years ago? Who knows? Seems that the only ones making money are the brokers, specialists, and the exchanges handling the flurry of orders every day, and collecting a fat check for margin interest each month. Watching the markets and trying to predict its behavior is like taking a 1974 Acid Trip. Other than that, I have no comment or observation about what may happen next.” Mr. Pierce has a very casual style of writing, but don’t let it fool you…he is quite savvy and makes very candid comments on what he sees in the markets. His last sentence probably has the most wisdom of all by saying, “Other than that, I have no comment or observation about what may happen next.” It’s a pure crap-shoot out there in financial land! Just roll the dice and see what comes up. Your odds would be better in Las Vegas and you will have more fun losing your money at the tables than sitting in front of your computers watching this mess in the markets. I realize I haven’t offered much food for thought in today’s WrapUp, so if you need some more profound intellectual stimulation, by all means go straight to “The Credit Bubble Bulletin” by Doug Noland that he posted last Friday. His very first sentence in the article: “Financial instability is dizzying.” After reading his work, you will probably walk away with a better perspective on how huge the economic boom is in China and Malaysia, a better perspective on the excesses in the real estate markets around the globe, and the overall systemic risk due to half-century low interest rates. The Federal Reserve has created moral hazard beyond belief. They have boxed themselves in a corner where they are seemingly forced into raising interest rates at the same time the economy is obviously slowing. You would think it’s a recipe for disaster, and in many ways it is…except they have a bigger problem on their hands…the real battleground of the U.S. dollar in global markets. I have to steal the wisdom from Mr. Pierce for my parting words in today’s WrapUp. “I have no comment or observation about what may happen next.” (Except to say it will be fancy to see how disconnected the market relationships will be with stocks, bonds, the dollar and gold when the first quarter GDP numbers are released tomorrow.) Good luck, ‘cause you will need it when gambling in the Wall Street Casino!!!