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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (11935)	2/17/2009 9:36:10 PM
From: zigzagman	Read Replies (1) \| Respond to of 33421

How about Gold keeps doing THIS?:

To: Cogito Ergo Sum who wrote (11935)	2/18/2009 12:58:25 AM
From: John Pitera	Read Replies (1) \| Respond to of 33421

Hi... the mythical Black Swan -g- a close relative of mine used to comment that the third time is the charm and that a pattern that hit's a ceiling or resistance point the third time tends to take it out and head higher. One could make a case that Gold could need one more bigger hit down towards $700 prior to it inexorable climb to 4 digits and beyond. Since we have so much Government involvement, machinations, manipulations and stipulations it's tough to discount the government's (at this point our global governments's) ability to play havoc with supply and demand and rational market action. My experience and analysis, says the Global Governments are not quick and adept enough here to keep Gold from rocketing up to the 1240- 1325 level without even generating a "negative carrot" for this. In this era of politically managed economies and politically managed money, we may not always see "Adam Smith's" invisible free hand of a laisez-faire economy triumph in many of these situations. I personally feel that Gold Pushes has legs in here and it takes the Government to cut those legs of appreciation off. John

To: Cogito Ergo Sum who wrote (11935)	2/18/2009 1:16:23 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

Looks blatantly like loss of confidence in the system buying.. as opposed to inflation hedge.. Think it might just be the result of the same kind of manipulations that have taken place in other commodities? I mean.. there's a ton of cash sitting on the sidelines looking for something to do. Cash isn't paying interest and the S&P isn't looking to provide any earnings growth for at least 1-2 years (if not longer). Real Estate is collapsing because no one has the credit to borrow, or they fear buying a depreciating asset. None of this sounds like a Gold Bug's wet dream (ie: hyperinflation), yet it's still happening. Why didn't gold surge when the Japanese Recession caught hold? All we've seen is Japan's government deficit spending to the point where their GDP to National debt is the highest of any developed country. Yet, they constantly fight to prevent the the Yen from strengthening. Hawk