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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (15501)	6/1/1999 5:33:00 PM
From: donald sew	Read Replies (3) \| Respond to of 99985

Heinz, Im only speculating, but when I took at look at the commodity charts they are really not confirming inflation yet. For discussion, lets say that there is little inflation. If there is no inflation then the market should rebound soon. However there is one factor that many are not paying enough attention to, and that is liquidity. I realise that many are saying that there is plenty of money on the sidelines, but on a year to year basis, the inflow into equities and is actually declining. I wonder if it is also on the decline for bonds. Money may be flowing faster to foreign markets than many may think. I do not have exact stats so I may be wrong. If anyone wants to comment please give some specifics since I would also want to know. seeya

To: pater tenebrarum who wrote (15501)	6/1/1999 8:08:00 PM
From: Roebear	Respond to of 99985

heinz, Previous key in relation to commodities was the relationship of ^TVX and equity indexes and the price of gold. Not that the POG is as important as it used to be, after all it is mired in a bear market, still it is watched. The door this key opened was the Bank of England sale. The next key you have pinpointed Re: it's just not natural for gold and industrial commodities to be in freefall when supposedly everyone is scared of inflation. something is very very wrong here I believe Donald Sew gives a good clue to the door this opens when he mentions liquidity. I don't have any answers and I will probably not have any till I get more clues from the intrepid posters here and a few other forums. But these two points seem very relevant to the markets and commodities current behavior. I agree with your conclusion, what's happening here cannot be good for stocks. Also, check out the following posts for an oldie but goodie indicator that forecast the subsequent market action pretty well, IMHO: Message 9708704 Message 9711007 Message 9713020 (Too bad I didn't listen to it. and short, the ol woulda coulda shoulda got me <VBG>)