repatriation of earnings to US$

[diablo7889]

Sol,
I'm having a little difficulty in placing as much belief as you do in the the idea that the repatriation of international co's earning from foreign currencies into us$ will have have as much of an impact as you believe. Do you really think that this single act of legislation will have the effect of propping up the dollar and holding gold down (at least until elections)? I'm no financial guru, but I am a contrarian. Another thing I seem to notice is the overwhelming sense that the bear camp has given up to a large degree in admitting that the economy is too strong to fall, and the dollar will strengthen. I dont know...just seems that the true contrarians now are definietly in the gold camp (of those who are left, that is....)
diablo

[Sol P]

Well if you notice, i mentioned that it could have that effect in addition i also mentioned if it did have an effect it would be short term and not long term and would be something I would personally look at as if it was a gift from heaven, because you would have the chance to buy stocks and bullion and ludricious levels.


The economy has very little to do with markets now a days, its all being held up with liquidity when all is said and done you have to look at the trend, the trend is up for the dow, and until the trend breaks that is where it looks like it is going to keep going, Up

[diablo7889]

I very much agree with you about the liquidity head-fake that the Fed has suckered many new stock market investors with right now. But in regards to this legislation, although temporary, do you see a significant re-test of lows. If so, what moving averages are you thinking about (and what are those targets, dollar-wise)? Are you more inclined to compare to Russel's 50 & 200 day moving averages ($374 & $357), or Jay Taylor's yardstick 20-day and 40-day (something like $366 and $304!)? I curious as to how these moving averages can be so far apart......I'm a long term investor, with some specific gold stocks I want to own, but they have had a significant run so far. Getting in after this rise, I'm looking to take a bath on them if gold re-tests lows that Taylor is talking about.
diablo