|
PureBytes Links
Trading Reference Links
|
At the 1999 Prospectors and Developers Association of Canada convention in
Toronto, one of the featured speakers - I believe his surname is Bishop -
cited the issue of the Economist to which you refer as contrarian evidence
of the end of deflation in exploration equities and their underlying
commodities.
Anecdotally, in late 1979 and early 1980 when gold was approaching US$850
and its continued upward march was front page news, a friend of a friend on
public assistance placed all of her meagre resources in precious metals,
ostensibly on the basis of the news. I don't recall whether she survived
the crash. I suspect she didn't.
Fortunately for persons on public assistance, going short by playing
deflation (or otherwise) is regarded as being beyond the pale by the main
stream press.
Regards,
Tony
-----Original Message-----
From: Stig Olausson <olausson@xxxxxxxxxxxxx>
>I think it was in February The Economist dedicated the whole issue to
>inflation, or rather the lack of same.
>I think the cover had a ghost on it named deflation - and the theme was
>that now the real danger is deflation, infaltion was dead.
>
>Interestingly it seems that the Commodity indwex bottomed out on FEB 26
>(the last day of week 9 which had an Astroindex of 64 (max of the year=65
>and the 26th beeing one trading day away from March 1and 2 (next week)
>which were both astrodays (days with clusters of several planetary
>aspects).
>
>the 26th also seems to be the head of an inverted H&S formation where the
>neckline was decisevly broken this friday.
>
>Furthermore the right shoulder of this H&S is the pullback from a break out
>of a larger Falling Wedge which pattern started with the bottom on Aug 28
>1998 ( Aug 26 beeing an astroday) (8/28= week 35 but WEEK 34 had and
>astroindex of 8 = the highest of the year).
>
>The break out of the H&S is very interesting since the neckline coincide
>with several fibonnacci resistance levels that are related to the tops Jan
>11 and Nov6/98, generating HEAVY resistance to an advance.
>After this was broken, there are no real clusters befor the H&S potential
>of 199,5 which also is the top of Jan 11.
>Potential in th Wedge is 206=Nov6 top. So the chances, in my opinion, is
>great that we should reach at least 199.
>
>If this scenario should unfold, perhaps my bearish Bondscenario could
>unfold as well.
>
>rgards
>Stig
>
|