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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (12686)	10/8/2008 6:32:43 PM
From: gregor_us	1 Recommendation Respond to of 71456

I like to see today's action in gold equities as the confirmation, after more than several weeks of money-flooding from the world's central banks, that today's actions with promises of more to come was the tipping point. I'm no authority on gold equities. But, I have watched them enough this decade to know that after horrific declines, the gold equities want to be assured of a fat and healthy near-term move in the price of gold before they become willing to move up. Well, they made the decision today. I also regard today's HUI/XAU moves as a strong tell for the wider commmodity complex. Finally, this is also a signal that systemic risk is falling. My view is that gold equities are just as terrified as systemic risk as any other asset class. What the gold equities may be sniffing out is malaise, stagflation, or reflation--but, all within a context where we tip away now from the edge of systemic chaos, and back towards something we can understand. In fact, I could see POG and Silver actually lose a touch of momentum here as the fear trade comes out of them, which the XAU and HUI crank onward ahead of the Money Flood Tsunami. Trichet's capitulation is pretty key here, I think. G