If you did not read all the post below, i mentioned that gold will be sold down again and again, yen would give a tight fight but the defend on the dollar is stronger from Paulson-Benar ke ni? coalition. They want to defend the dollar but at the current scenario they are defending it so that have margin of safety to bash it down, the fact that they are bailing out all the conglomerates show that they are not practicing accounting regulation that is prudent, they do not regulate the financial market but open a new chapter to assimilation and coordinated actions in cash injection.
If CPI and GDP were the real indicators as they shown, i am fine go all the way to buy them out, bail it out, but the policy makers are contradicting themselves, creating false hope by picking dollars from thin air, by selling treasuries made of thin air, they have to do something for the dollar or else when people start to desert the dollar, start to view its intrinsically fiat value, foreign countries will either transfer all their reserve in to Sovereign wealth funds and switch a portion to safer shores. The tumble will lead to a series of dominoe effect, this is the reason the have to hold up at least the dollar.
Gold is being bashed at the moment i write, commodities as well, but hold that sell button, think again as an investor and not a trader, or speculator, these rally sparked by temporary injection of cash, what if the injection is dissolved as fast as they were injected? Would a band aid help to hide the wound, only to learn end of the day band aids fall of! Not everyday is a shining day, and not everyday is gloomy, price actions work in the market, there would be time when a price is justified to buy by majority, but those are herds, that usually go bust and starts to sell until minority steps in. Short term gains are meant for volatile periods but do not buy and hold, at least not yet, if the market is really recovering we could head 15k in the next year so why risk for that small 10 - 20 - 30% gain.
I read a post that says that if you provide enough money you can solve almost anything, but not this mess. Not in a market where employment is not there, where wealth distribution is held back, where we are not able to gain from the so called fiscal stimulus plan which is nothing fiscal about. Rate cuts, cash injections, have they not paid enough the money they pay could feed another nation for so long and so long, the money used for war is to the extent where words cannot be used to describe, where no layman would imagine holding unless there is a hyperinflation and the currency goes way off course (Zimbab).
Russia led the rally by 18%, euro FtSe n DJstoxx 50 all led in three digits, HSI gave in 1.4 k gains, us futures are triple digit earlier, but is this all an illusion by temporary pumping of the dollar and cash injection, if u gave me quarter of a trillion to pump into the market i dont see why its not going up, but for how long and how fast the cash would disappear again. This effort is inline with naked short selling banned remember they have 3 days to cover the naked position. This is final would the 3 days rally last, or is this an opportunity to buy commodities?
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