Quote:
Originally posted by GeoffreyTransom
This downward blip - which will be the countersign of an upward blip in equities and a downtick in bonds - will just enable smart money to re-short both US equities and the USD at higher levels. And of course Gold has been smacked a little overnight - "real" things will suffer for the next session or two, while "fiat" things will go for a little bit of a romp... however with the VIX at its lowest level IN HISTORY, this is one of the best times to think about shorting US equities...
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There... now that wasn't too hard, was it? AUD new high today, GBP new high today, EUR new high today. If the Dow closes RED after this, with every news media organ pumping out "Saddam Capture to Boost Stocks, Dollar" drivel, then we are in for a new leg down in equities and a new bout of USD weakness.
Find out which direction the mindless herd is likely to run, and bet against it.
That's the reason that herd animals tend to be eaten by "small pack" animals and solitary predators. After all, if lions ran in prides of 20,000 there would not be enough antelope around to feed more than a few packs.
Of course in financial markets it helps to let the herd get up a bit of a head of steam so that insiders can maximise the amount of fat they can get off the herd's carcass. I don't remember who said it (I think it was Marc "Doktor Doom" Faber) but it stands to reaon that the market MUST NOT EXIST TO MAKE EVERYBODY RICH... it is a machine for re-concentrating wealth which has dribbled away from the insiders!