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 : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (78100)	12/7/2007 3:48:02 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

Sometimes high stock prices and bearish dynamics go together, which is why you have to look at the diluted "base", the currency, as well as prices in that base. Zimbabwe was the best performing market of 2007. They have hyperinflation there, of course, and their economy is completely gone. -g- We are marching in that direction, but not to the same extreme -g- I'll be very surprised if the dollar rally continues in the face of a 50 bp. Fed cut. I'll be even surprised if the dollar does not drop 10% in the 3 months following the cut. -g- On a positive side, homes are made of "stuff", so they too will go up in price, and fixed rate mortgages will be annihilated. I have one -g- In other words, I expect that the housing bubble will be fixed without the neccessity of deflating it in nominal terms -ggg-

To: GROUND ZERO™ who wrote (78100)	12/7/2007 4:56:28 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

Your model does not give targets, if I remember correctly. So, maybe we do go to 1700, maybe it gives a sell earlier. -g- 1490-1500 should now be a strong support under these markets, unless it was a whipsaw, which is always a possibility -g- 1540 is the next level, then 1555 and 1576. It "should" be a good ride into da Fed, da rest is unknown, as there are strong bearish undercurrents -ggg- The main undercurrent, the dollar, has been temporarily conquered by the PPT. I fully expect that bear to resume post-Fed with the 50 bp. cut on December 11 these markets are now celebrating. The same cut and huge government bailouts are extremely bearish for the dollar. Where will all dat government cash come from? Taxes? We are running a huge deficit. Then what else? -g- I think Ben/Hank have that little electronic machine to drop $$$ from hilos, but da dollar will go down with every use of that machine. It is true that there are attempts of global Weimarization, but so far foreigners are cutting much less than US, so the interest rates will pressure the dollar further down. We just had a hilo squad unleashed on these markets. Were it not for them we would already have crashed in August or now, or even before -ggg-