From: "pirateofwallst" <pirateofwallst@yahoo.com> Date: Sat Mar 12, 2005 12:02 pm Subject: OT> This guy one smart fortune cookie ....
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He wrote this, >>>>>>>>>
Frank Yang <frank_yang0313@y...> Date: Fri Mar 11, 2005 7:57 pm Subject: The stock market, the treasury, asnd the dollar etc.
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As I have been emphasized for 2 days, the major longer-term trend of the US stock market has been confirmed turning down: 1. Extremely disappointing U.S. trade deficit report on Friday morning 2. Significant reversal in energy prices, constant concern in conjunction with international diversification threat 3. Stock market failed to respond favorably to the Intel earnings report
In the wake of another record trade deficit reading, weak U.S. equity prices and a falling U.S. Treasury market, it would not have been surprising to see very aggressive selling come in against the Dollar. However, the Swiss, Euro and Pound were all extensively overdone technically and therefore somewhat without significant follow through buying capacity. It would certainly seem as if the overall trend remains down in the Dollar and that more significant declines are due off the trade deficit issue and a host of other negatives.
The Treasury market was torn between two opposing fundamental developments on Friday. In addition to a new record US trade deficit reading, which in turn increases the concern of international rotation away from U.S. instruments, the Treasury market also appeared to find support, in the wake of the trade numbers, by speculation that intervention buying off the falling Dollar would actually support prices. However, in the big picture(from a macro economic perspective), the Treasury market continues to be confronted by dominating fears of a rising supply of US government debt and the rising threat of inflation that is being brought on by soaring energy prices. Yet, for those short Treasuries, it is very difficult to expect more downside, as it is technically oversold already.
It is clear that bull psychology of the crude-oil market is reconfirmed today. Apparently, there were some refinery problems in Europe, as well as some of supportive dialogue from of the Nigerian oil minister. Part of the gains Friday might also been a delayed reaction to the favorable demand projections for China.
In addition to ongoing flight to quality concerns associated with the falling Dollar, the metals markets are seeing the increased chance of cost push inflation from the energy complex. There is increased fund interest Friday in a number of commodity markets and that should simply be another benefit to both the CRB index and the precious metals.
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Got some info, very low float and shares outstanding. If u want the info email me, or instant message me at pirateofwallst on yahoo instant messenger.
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