-- Posted Friday, 5 October 2007 | Digg This Article
| Source: GoldSeek.com
DEEPCASTER LLC
www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation Wealth Enhancement
Financial and Geopolitical Intelligence
Whether one is bullish or bearish in the short-term on Gold and Crude Oil one must concede that recent highs in Gold and Crude are, at least in part, a result of U.S. Dollar weakness vis-à-vis other major currencies.
It simply takes more weakened dollars to buy the same number of units of Gold or Crude. Indeed, there appear to be no compelling fundamental reasons for The Dollar not to continue to decline. This fact would support an argument for a continuing bullish case for Crude Oil and Gold in the short term. Yet there are other countervailing considerations for Crude Oil and Gold, to which we allude below.
So what do the foregoing observations suggest? Consider the Dollar. As Deepcaster has pointed out, in the middle and long term the fundamentals and technicals for the U.S. Dollar are horrible. But on short-term technical indicators the Dollar is very seriously oversold.
By their rate cuts of August 17 and September 18, 2007, The Fed has acted irresponsibly because those cuts, inter alia, weaken the U.S. Dollar further, thus facilitating hyperinflation. Indeed, real consumer price inflation is already running at about 10% per year*.
Even so, in the short term The Fed and a number of other major Central Banks have a strong interest in not having (what is still) the World’s Reserve Currency simply collapse.
Similarly to Crude Oil and Gold, the Equities markets have recently been flirting with their all-time highs - - the Dow has recently surpassed 14,000.
But Deepcaster has also noted that while the short-term stochastics and the advance/ decline signals for the Dow and NASDAQ indicate a “buy” in the short term, increasing downside volume and the Dow’s nudging the top of its Bollinger Band, as well as the bearish divergence between advance/decline indicators and prices are all signs that the Equities markets may be topping.
Moreover, Deepcaster noted an important correlation between Gold bullion and Equities prices several months ago. So far, the correlation that we described has generally held. And Deepcaster has made profitable recommendations based on observing this key correlation.
But these four Major Markets Sectors are fast approaching some serious watershed turning points technically. The fact that there are several serious Fibonacci clusters around the end of the first week of October is only one indicator that major moves are imminent.
Regarding Gold, Crude, the U.S. Dollar and the Equities Markets, the interventional firepower of The Fed** itself, and the interests that the major Central Banks (which collectively are the Fed-led Bankers Cartel**) have in not having the world’s reserve currency collapse, suggest that the Dollar is headed higher and Gold, Crude and Equities headed lower, in the short-term.
But the fundamentals for the Dollar are horrible, and the fundamentals and some technicals for Gold are superb. Moreover, the fundamentals and technicals for crude oil and the equities markets are mixed.
As well, consider that the Bank for International Settlements (BIS) reports there are $463 billion (Dec. 2006) OTC derivatives available for Gold Market Intervention and over $6 trillion for the Crude Oil Market.
And consider that unreliable government agency data is periodically the catalyst for “market rallies.” For example, the equities markets rally of October 5, 2007 was based on “nonsensical…September payrolls (numbers which were)…statistically indistinguishable from an outright contraction…” according to shadowstats.com
Will the Gold, Crude and the Equities markets seriously break out to substantially new highs? And will the Dollar therefore continue its march lower in the short term, or will Crude, Equities and Gold turn lower and the Dollar turn higher?
Considering the foregoing technicals, fundamentals and interventionals has enabled Deepcaster to issue a Forecast for all four market sectors as well as two “buy” recommendations. The latest Forecast is posted in the Alerts Cache at www.deepcaster.com.
In sum, the fundamentals pressures, the Interventional Interests of The Cartel, and the remarkable variety of technical watershed points indicate major moves in Gold, Equities, Crude Oil and the U.S. Dollar are coming soon
Deepcaster
October 5, 2007
*see www.shadowstats.com
**We encourage those who doubt the existence of Intervention by a Fed-led Cartel of Central Bankers to read Deepcaster’s October, 2006 summary overview of Intervention entitled “Juiced Numbers IV: How the Government Gets the Statistics It ‘Wants,’ Markets Get Manipulated, Citizens Get Deluded, and Worse” at www.deepcaster.com. Also consider the substantial evidence collected by the Gold AntiTrust Action Committee at www.gata.org for information on precious metals price manipulation. Virtually all of the evidence for intervention has been gleaned from publicly available records.
DEEPCASTER LLC
www.deepcaster.com
Wealth Preservation Wealth Enhancement
Financial and Geopolitical Intelligence
Gravitas, Pietas, Virtus
-- Posted Friday, 5 October 2007 | Digg This Article | Source: GoldSeek.com
