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

To: ild who wrote (61895)	5/24/2006 2:31:21 PM
From: yard_man	Read Replies (1) \| Respond to of 110194

bought a whopping 7 XLFUF at the ask ... of course, as money rolls out of stocks -- bonds get a bid, then the banks go up and I have to buy more of them for 30% of what I just paid. EDIT: Oh heck -- broker must have been showing me a bad bid/ask -- I just got scalped on those

To: ild who wrote (61895)	5/24/2006 2:33:07 PM
From: orkrious	Respond to of 110194

Date: Wed May 24 2006 12:58 trotsky (@stock market) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved another rally falls apart = double whammy for gold shares. if the XAU doesn't fall further it will however establish a bullish divergence with PoG today. Date: Wed May 24 2006 11:51 trotsky (Jessica) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved what you sell, someone ELSE must buy. the cash you receive simply wanders from the account of the buyer into yours. thus total cash available to market paticipants remains unchanged. only margin buying power decreases when prices fall. Date: Wed May 24 2006 11:42 trotsky (Bizarro) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved Japan's government obligation are approximately THRICE as high relative to GDP than those of the other industrialized nations. feed THAT into the INflation theory. Date: Wed May 24 2006 10:48 Pyrite (Gold to $520.50) ID#234123: Copyright © 2002 Pyrite/Kitco Inc. All rights reserved Why? Because that's the 28% tax remainder on the few who got out at the top an what they'll have to come back in at. Date: Wed May 24 2006 10:47 trotsky (goldcall) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved it would help if you revealed the source of this information. upon googling it i noticed that there is nothing about this alleged hedge book transfer on the web. if it is true, then you must have access to non-public information, no? Date: Wed May 24 2006 10:42 trotsky (traderneal) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "Funny, how the market kind of new this was going to happen starting at 1:30pm yesterday." already explained this once, i'll give it another try: the same players that are in gold and gold futures ALSO tend to be in gold stocks. when decisions to liquidate futures positions are made, the stocks get sold beforehand ( and vice versa ) -thus they tend to lead the gold price. also, the gold stocks are far less liquid than gold itself, so selling and buying has a more immediate effect on prices, which reinforces the leading aspect. Date: Wed May 24 2006 10:38 trotsky (Jessica) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "With the general market down, PMs down, bonds down, and banks still not paying much interest, there must be a great deal of cash on-hand." what makes you think so? when financial asset prices decline, a lot of money simply goes to money heaven. for every seller there is a buyer ( i.e., the level of cash in the sytem isn't increasing just because stock prices fall ) . the main change is actually that there is now LESS money available to push prices up, as margin buying power decreases along with falling prices.