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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (11898)	9/22/2008 9:34:53 PM
From: SliderOnTheBlack	3 Recommendations Read Replies (2) \| Respond to of 50281

re:[i guess i had read your posts as rather leashed"] From HUI 470 to 270-300 they were <vbg>. The markets had rolled over into a deflationary asset collapse. Stocks, Bonds, Housing, and Commodities, were all collapsing. Permabulls got lucky, because if the US financial system had not blown up... they still would be. This "V-Rally" reversal in gold and commodities is due to the proposed One Trillion Dollar+ coordinated global reflation. The correction in gold was caused by deflation. And this rally in gold, was caused by Central Bankers "inflationary" reaction to deflation. How long this rally lasts, will depend on whether this unprecedented injection of cash stops the deflationary collapse. As I said earlier... In the short term... one helluva lot more money will be created out of thin air, than will be commodities pulled out of the ground. And in the short term, traders are seizing that discrepancy between the current price of commodities, and the risk of further deflation. We just witnessed an extraordinary study in market behavior. Denial by the permabulls that the fundamentals for gold had reversed... ...even though the Fed had long ago ended it's series of rate cuts. ...even though the US Dollar had bottomed and turned strongly off its bottom. ...even though the Fed began to tighten money supply. ...even though the global economy was rolling over into recession. And that denial walked straight into a total market collapse. We've just witnessed fund managers liquidating gold stocks not because they wanted to, but because they had to... regardless of the price. And that redemption liqudiation just bottomed and reversed, because global central bankers are proposing the largest coordinated reflation in modern history. And now, we're seeing many of those same permabulls who knew Gold best, but who've been disappointed most, loving this rally least. There is, was, and will always only be, one thing that you can remain a permabull on, and always make money. ...DNA S.O.T.B. PS: Don't get complacent, and don't get greedy here. If you're trying to claw your way back (and we've all been there), don't try to do it all in one swing. Take "some" profits atop all major rallies like this, raise stops up tight, and don't be afraid to buy puts as insurance. And DO NOT use margin leverage. ...don't even think about it. Call options are cool... margin is not.