it does appear like a near term top............................usually when people pay more for gold in the ground (xau) than they pay for gold bars (38099902) then ......then we know they are nuts........ie a top......presently ......the XAU is selling for almost as much as gold bars which is a top.............the red line is gold bars, the heavy black line is XAU, and the blue line is the SPX

 

The amerikan SPX is banging its head on the 5/31/2001 price of 1260.....it is either a breakout...or the SPX goes back down the sewer....

 

gold is happily increasing in price....effectivly ....devaluing bonds , shares, and cash

 

ie....paper assetts buy less and less things around the world ....it now takes me 50 times the paper money to buy a cord of wood as it took a long time ago.....

 

The 5 and ten cent store .....became the buck or two store..........and now......soon.....the $5 and $!0 store

 

 the current environment, the Fed has been raising interest rates, yet at the same time adding substantial money supply, Richard Russell, publisher of the Dow Theory Letters, writes that the Fed is on course of adding one trillion dollars to the banking system within a year. Talk about trying to have it both ways �?raising rates while adding money supply. Soon, the Fed will no longer publish M3, a broad measure of money supply. The official reason is that M3 is no longer a good measure for economic activity. While M3 has its deficiencies, removing public access to it only raises suspicions. We cannot help but suspect that the increased “transparency�?the Fed is proclaiming is indeed an increased “management of expectations�?�?we are deeply concerned that this path will lead to an erosion of trust in the Fed.

trust... LOL!!! 

SMALL CAPS STILL HAVE ALOT OF UPSIDE<,,BEFORE TOPPING OUT!

 

 

JMHO