As I said before, I believe the market has bottomed. Well, I believe the process has begun, the line drawn in the sand if you prefer, and I expect the low to be challenged at least one more time. I expect double and triple bottoms to be established in a multitude of equities in the ensuing months, if not quarters. The rally so far has been a big bounce. Obama came out and declared that in effect 'things aren't as bad as we thought they were'. Pandit sent out a 'feel good' memo. Banks have responded in kind. In the end, you can still buy C for $3.05 and BAC for $6.90 and be paid a whole penny every three months simply for holding on to the stock. Now we see how AIG's tax-payer funded doomsday bailout has 'trickled down' to large foreign banks and hedge funds. All those shiny new dollar bills printed have gone nowhere of use... unless you're a salesman at Land Rover, an illegal landscaper, or a prostitute. It is this printing press which fundamentaly supports my view of a palpable bull market in gold. If the run up in price over the last couple of years isn't real enough, or the fumbling of the global economy and monetary policy, just look at the 13- and 20-week moving averages... or the decreased selling pressure in the last month. But you have to pick your spots... all gold equities are not created equal. Which is why I like GSS - besides demonstrating a nice buy signal using my system, look at either the 20- and 50-day OR 13- and 20-week moving averages. Real estate - the 'source of the problem' - is starting to attract customers what with the fire sales and all, including me. But I'm afraid that with the scent of buyers returning, the market is going to be flooded with even more homes for sale in the busy summer season, leading to bigger and better deals as sellers try to undercut each other in order to get out at whatever cost. I sincerely hope Americans know better. We shall see, shant we...
Ciao for now.
