Tuesday, May 30, 2006

Gold Article

Here is a great article on Gold, interest rates, economic activity, and politics that was posted on Bill Cara's Blog.


I used the bounce the other day to initiate more shorts. The severity of the decline with such powerful volume is just convincing me that I need to be at least a little short or maybe even 100% short. Too many things are going on in the financial markets to ignore such a sign. Gold prices, Oil Prices, falling dollar, higher interest rates. It seems like 1979-80 all over again.

It's funny to see the President rotating out his salespeople... I mean cabinet members. His problem is not his cabinet, it's his inability to veto a bill. If he would just veto ONE massive government waste bill, people would probably start to respect him a little more. As it stands, he is letting the lecherous politicians spend all of our tax dollars, grow the deficit, and inflate the value of the dollar. Who will win in this environment? The financial community with the best grasp of the fundamental picture, and Trend Followers like me. It's not hard to tell that a lot of people have been selling a lot of stocks, and it's not just "profit taking." It's profit making.

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