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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: scotty who wrote (13518)	6/19/1998 12:36:00 PM
From: ahhaha	Respond to of 116758

I have positions in gold stocks. I'm currently 70% in cash. I don't trade because after 15,000 transactions wearing all kinds of hats for 30 years, I don't believe I can succeed at that. You shouldn't go long gold yet. The sentiment hasn't fully played out on the downside. Summers has achieved absolutely nothing in Japan. It's business as usual. The price of gold stocks is still downside bound though the metal is holding its own. Forget about the commodity markets and their irrational stupidity. The traders are hooked on a pure fallacy: the fallacy that Japanese bank debt has ANY significance. When the traders pushed by the private banks start selling the yen in the next week or two, it won't be because the yen is fundamentally over-valued. It will be a speculation. The private banks will initiate yen long positions by selling into their own stops. They will use the negative sentiment and market thinness caused by the guerilla tactics of FED + BOJ, to accumulate a sizable yen position. It is humorous to consider that the yen went from 140 to 110 in 1995 when all the so-called problems were equally bad if not worse. It just wasn't operational then that these excuses should be trotted out. Now the BOJ has brought them out to defend Japan's obsession with neo-mercantilism. So you can expect more yen weakness and the hapless market for gold will be negatively impacted. By August this nonsense will have worn off and the denial of reality will catch up with Japan. They will have to start pumping and that will raise the yen and gold too. I will give more elaborate comments later today on this yet another American fiasco.