Replies to post #5746 on The New CS Board

[jumanji0881]

Re: Punch bowl


The Fed has no exit strategy and any hint of taking the punchbowl away would crush stocks. The Fed is the only support stocks have. If anything, I expect more Fed intervention once Europe implodes.

[xray44b9]

I just look at a stock like IAG (use just about any miner) and compare its price to where POG was, say, 3 years ago:

Mar/Apr 10

POG 1100 area
IAG 13 and change.

Today

POG 1635
IAG 8 and change

That tells me that any correlation btw gold and miners is now an almost completely broken relationship and the market has "divorced" the miners in relation to POG.

Too bad, as some of the charts and balance sheets are beautiful textbook cases of oversold and undervalued...but it just doesn't matter anymore, the hedgies/funds/tutes have moved on and simply use the miners now for liquidity/short-term bounces and re-shorts.