Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: Handshake™ who wrote (1782)	4/3/1998 11:25:00 PM
From: EtTuBrute	Read Replies (1) \| Respond to of 25548

Interesting gold reading from Kaplan: DECREASED GROWTH, INCREASED INFLATION-This morning's numbers from the U.S. Labor Department show a net decline of 36,000 in the total number of Americans who are employed, with a larger than anticipated 4-cent increase in hourly wages. Decreased growth with increased inflation is the classic scenario for a gold rally. Does anyone remember "stagflation"? For those of you who are baby boomers and can't remember anything before 1985 or so, the word has nothing to do with college frat parties. As gold rallies above $300 per ounce, automatic buy stops are being triggered by short sellers attempting to cut their losses. The short covering itself then moves the price modestly higher, leading to a new round of buy stops being triggered, and so on, in a classic short-covering chain reaction. This activity illustrates why one should not dismiss the traders' commitments as a useful intermediate-term trading indicator. For gold, the commitments show that there are potentially tens of thousands of short speculator contracts with buy stops to be taken out.