Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (57749)	4/9/2006 11:06:21 AM
From: John Vosilla	Respond to of 110194

Serious inflation with treasury yields still below their lowest point of the 1990's when inflation really was tame. Another conundrum? Or are we in goldilocks with low inflation and modest growth? Or at the onset of a serious deflationary debt cleansing bust? Still thinking a persistent upward move in rates, inflation for things people need and serious adjustment in certain overvalued assets has to be part of the future.

To: russwinter who wrote (57749)	4/9/2006 11:07:37 AM
From: booyaka	Read Replies (2) \| Respond to of 110194

Re: copper One further observation I would make this morning; the rate of increase in copper prices has begun to give the daily charts a parabolic look. A review of past commodity bull markets will repeatedly show that parabolic price action is the final and most impressive stage of a bull market. It is where the greatest gains occur over the shortest period of time. It’s that stage where the daily charts look like they're going straight up. But I stress, that it is often the final stage of a bull market, where speculative and commercial participants get caught up in the panic, paying outrageous prices to either get involved or lock in future supplies. Why does it matter? Copper has been the leader for this entire commodity bull market. It failed to correct when others faltered. It has had the best uninterrupted run of any of them. And if it exhausts itself on a moon shot higher over the next month or two, that will be significant. It will take other metals along for the ride to the upside. It will generate all types of financial media buzz and perhaps even Fed mention. But when the end comes it will be violent. It will likely put in a one-time spike higher that will set in place a top that may not be surmounted until the next big cycle rolls along decades from now. That development will also have ramifications for other commodity prices. For now, the implications are very bullish. But we’ll need to be aware of what is happening and keep our heads when all those about us are losing theirs. Good luck today. Steve Plant FXA fxa.com