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The
BS Bull ~ Stay Clear or Ride? “School-days,
I believe, are the unhappiest in the whole span of human existence. 10:14am 12/09/03 Four Dow stocks reach 52-wk. highs (AA, MMM, GM, UTX) By Tomi Kilgore NEW YORK (CBS.MW) - Four Dow industrials components have reached 52-week highs in intraday trading, including Alcoa (AA) , General Motors (GM) , 3M (MMM) and United Technologies (UTX) . The Dow also reached a new yearly high, peaking above 10,000 (10,003) for the first time since May 31, 2000. This news clip was taken from CBS MarketWatch. What is painfully clear is that Wall Street is ruled by pencil heads who have no capacity to think. It seems that they have two brains cells only; each chasing the other at the speed of light without any chance to form any coherent or unique thought patterns. They are like a bunch of monkeys sitting on the top of a huge banana tree chatting and the only way to stop them from spewing more incessant garbage is to plug their mouths shut with a few bananas. By the way, I have nothing against the chap reporting this story. He is only doing his job. The culprits are the analysts. Not one of these tops guys has bothered to look at the Dow, or its components, or for that matter any aspect of the market in terms of stronger currencies like the South African Rand, the Kiwi Dollar, the Australian Dollar etc. They keep mumbling and fumbling and getting ready to pop the champagne bottles this year when the only thing that should be popping is their bodies as they are flung out of the nearest window into the street jobless for all the garbage advice they have given the average Joe. I have repeatedly stated over and over again that the Dow has done nothing and is doing nothing. It is locked in a tight range. All it is doing right now is adjusting to the high level of inflation. So Dow 10,000 today is not the equivalent to Dow 10,000 almost 2 years ago. it is more like Dow 8000. When a currency is dropping at the speed of light, who cares if the Dow is at 15,000? I mean, would any of you care tomorrow if the Dow was at 20,000? But it now took 4 US dollars to buy one Euro and 5 dollars to buy one gallon of gas. This is not a True bull market, but just pure BS. I will illustrate my point with a few Dow components to shatter the illusion and bring in a healthy does of unwelcome reality. We are going to look at 4 stocks. First let's look at them in US dollars and get all bloody merry and have big bash. Then let's take a look at them in a strong currencies and see if the party should go on. UTX In US Dollars
UTX IN South African Rands
MMM in US Dollars
MMM in South African Rands
GM in US Dollars
GM in South African Rands
AAA in US Dollars
AAA in South African Rands
Now what was it that headline said? 4 Dow stocks have reached new highs. Yeah right. wake up and smell the coffee. Get ready for the ultimate currency war. We are just at the beginning stages now. The war is going to get ugly and the toll in terms of financial damage is going to be very huge. Most people are going to be slaughtered like pigs. Be very careful. We are entering the final stages where it appears everything is fine and dandy, but we are tethering on the edge of utter destruction. However, let me answer the other part of the question, Do you ride this bull market? Yes you can ride it. Make sure that you are familiar with the currency markets or your financial advisor or the advisory service you use is aware of it. If they do not know how to price currency markets into the financial equation, you could be sitting on a time bomb. There is a lot of money to be made playing this market. However it is not something to speculate in right now --especially since we have this huge massive competitive currency devaluation war going on--unless you familiarize yourself with how the currency markets function. In our paid subscription services, we are playing this BS bull market, but we are doing so with the knowledge that there are risks associated with this type of investing and with the concept that we are not in a new bull market firmly reinforced into our heads. I only state that so no one can come to us and say hey you don’t practice what you preach. I am preaching nothing here, simply providing food for thought. How you use this information is entirely up to you. 90% of the people cannot even see the BS in this bull market let alone smell it and so mass psychology provides one a very powerful tool to benefit in such times and in all market situations. However the safe bet is to buy GOLD and SILVER bullion every time they pull back significantly. This is what I call safe and stress-free investing for the long term and that is where we are primarily focusing our long term investing strategies on. If you chose to speculate, do so with money you can afford to lose and please don’t bet your children’s future on the stock market. I still view Gold and Silver bullion as the Ultimate investment opportunity of this decade. If you would like to educate yourself on some concepts of mass psychology you can do so here: http://tacticalinvestor.com/masspsychology.html For some concepts on Contrarian investing go here: http://tacticalinvestor.com/contrarianinvesting.html For a collection of some great TA tools you can go here: http://tacticalinvestor.com/page17.html To price stocks and indexes in other currencies you can go to www.stockcharts.com a very good free resource in addition all the above links to our site are free and cost you nothing but your time. “The
difference between school and life? “I
have found it; I have discovered the cause of all the misfortunes which
befell him. ©
2003 Sol Palha, Tactical Investor CONTACT
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