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

To: Real Man who wrote (28430)	5/7/2010 10:35:07 PM
From: ggersh	Read Replies (1) \| Respond to of 71475

There is much air under these markets. The machines don't take into account that there is no liquidity, only volume. Price discovery is no longer a market function. -ng-

To: Real Man who wrote (28430)	5/8/2010 4:29:21 PM
From: gregor_us	7 Recommendations Read Replies (3) \| Respond to of 71475

My best guess for way forward: 1. We're going to bounce pretty hard in equity markets from here into Summer. 2. BOJ, ECB, and FED are going to flood world again with fresh paper--they have worked too hard up to this point to reflate to lose the plot now, to Greece. 3. Final judgment on this mess doesn't come until there is mass revulsion for all sovereign debt: German, Japanese, and US especially. I think the gold stocks are going to explode higher. Once the leveraged spec community smells the non-correlation to the market (already underway) they will push XAU/HUI/GDX/GDXJ to extremely high levels. It could be like oil stocks in 2008 which de-coupled from the market--until they didn't. Things to watch for: European stock markets shooting higher as capital seeks to hide in stocks as either the EUR or EUR based bonds falter further. Silver is warning us that the script this time is likely to be different. Silver should be getting massacred here. Instead, it's soaring after brushing off a liquidity-driven pullback earlier in the week. What's different about now compared to 2008 is that the fresh money printing--not enough to "save" the system ultimately--has reached its own momentum. I would also add that the world's sovereign bond markets are holding an enormous amount of capital. So if one believes they too are going to run into trouble (and I do) then the demand to liquidate those and go to cash will be overwhelming. We need to think about the tidal wave of liquidity that may come from a mass download out of the world's sovereign bond markets. I've been thinking about this aspect for years. It's an even more urgent question now. G