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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: Wayners who wrote (8629)8/12/2010 5:21:12 PM
From: GROUND ZERO™  Read Replies (1) | Respond to of 218756
 
I agree with you completely, we're heading toward deflation and the Fed will not be able to stop it, they're printing money 24/7 and it won't help... but, these charts reflect the sentiment of smart money and it looks 10 months ahead, the gold chart has given me a buy signal a week ago and gold has rallied from 1170 to 1217 with no effort at all... the longer term chart looks like a power house, so I would have to suspect that inflation may well be the second shoe to drop behind deflation...

I'm certainly no economist, but I can read the charts, and the gold chart is screaming to be bought... of course, if the gold market collapses tomorrow, then I didn't post this message...<g>

GZ



To: Wayners who wrote (8629)8/12/2010 6:57:36 PM
From: tdl4138  Read Replies (2) | Respond to of 218756
 
Read the other day that a survey, by I believe Morgan Stanley, showed Walmart had raised their prices 5.8% while the average grocery chain had only raised just over 1%. In my area Walmart is no longer advertising "Rolling Back the Prices". Not a big deal....but they are the largest retailer on the planet. Sam's Club is also open to the public for the month of August....no membership required. Why would they do that? Isn't business growing?

Some prices seem to be dropping while others are moving up. There doesn't seem to be any rhyme or reason. Local Chevy dealer had a leftover PU with an msrp of $41K. The salesman was falling all over himself touting the 5K rebate. When I asked him what the dealership was discounting he looked surprised and repeated there was a $5K rebate. When I pressed the issue he told me they might find another $1K....That was a few weeks ago....the trucks still sitting there.

Farm equipment is another example. The dealers have no inventory on the lots. Of course you can order anything you need or they might be able to do a dealer locate. But the discounts are minimal. Used tractors are bringing strong money as new units are scarce.

None of this makes much sense in a slowing economy. If a retailer believes he has pricing power the cost goes up. On the other hand, if they have to move inventory the prices are dropped hard.