Replies to post #36 on Steve's Place

[DeepBlue1]

Gold/silver/USD wedges are all coming to the final squeeze range this week.

Something has to give pretty soon, and with all the new bad news, the unknown quantities of bad debt, etc it looks like a big downer for the general market coming as the hedgefund redemption date of Nov 15 approaches.

Unfortunately for silver/gold, the flight to and hoarding of the USD are accelerating again as evidenced by the treasury interest rates dropping again ACROSS THE BOARD all the way from the 3mth to the 10yr.

So the market is going down which will drag equities as well as commodities down with it since there will be yet less demand and which will in turn hold down any inflationary pressures.

From where I stand, there is nowhere to go at the moment and I guess I'll just stay out until the next technical bounce presents itself somewhere.

Longer term, since Obama was elected, I think there MAY BE a positive bias towards heavy construction and alt energy stocks
but they'll have to weather the next leg down too before they begin to get legs somewhere closer to the inauguration or afterwards.

One possible bright point might be that China has now instituted a HUGE STIMULUS PACKAGE too(relative to the size of their economy compared to ours)which signals that they plan to attempt to continue their growth through domestic consumption.

This COULD POSSIBLY give a little boost to some construction and energy commodities such as oil/coal, but I doubt it'll be anything to get too excited about.

[DeepBlue1]

Re:Fed Defies Transparency Aim in Refusal to Disclose

It's not surprising that they're trying to keep this info under cover. It's almost certainly much worse than we know so far.

I did see a quick blurb on this very subject on the Keith Olberman show tonight.

I did buy 100 SLV near the eod today after thinking about the Chinese bailout of their market. I figured that if they're going to start focusing on rescuing their own economy that they're not only going to be less likely to continue buying our treasury notes but may in fact use the reserves of USDs that they already have to provide their own liquidity.

The $560 billion dollar injection could come in the form of US Dollars and that COULD signal the beginning of some inflationary pressures.

The market reacted to it early in the day and rallied, and although it ended down for the day I noticed that silver/gold were holding up and staying positive.

This fact and watching the USD struggling around it's current level and failing to make any gains above the 86.50ish level on the DVX index also encouraged me in the purchase of the SLV today a few minutes from the close.