Jun 22, 2007

How Long Will the Commodities Boom Continue?

By Roger Wiegand
Jun 21 2007 3:50PM
www.tradertracks.com


(snip)
"What traders need to be careful of is a nasty stock markets smash this fall which could take down most of the global markets to some extent. This kind of pressure would sell all varieties of stocks, bonds, derivatives, debt instruments and futures and commodities markets. After such an event, we think those markets in precious metals including stocks; futures and cash prices would level off and rally again. The bonds are going to keep selling and the U.S. Dollar sliding beneath 80.00 is a danger to the entire global financial system. We predict Japan will grudgingly help prop the dollar when its apparent failure is imminent.

In our view, almost all nations of the world no matter what their feelings toward the USA would work in concert to prop the dollar. If the dollar takes a really big smash, we think everything goes down including even some of the best fiat currencies like the Canadian Dollar, Euro, Swiss Franc, New Zealand, and Australian dollars. This is simply unacceptable for not only those in power within the United States but in other nations as well. A crashing dollar would slop-over into most markets and the foreign dollar holders would take an unprecedented beating.

One of our excellent analyst friends has suggested the United States Treasury and Federal Reserve could chop the U.S. Dollar in half deliberately to reduce by 50% the debts of the United States. This is a really scary idea as it could have unconsidered ramifications and a substantial blow-back from other hidden aspects of finance. Trader Tracks takes the fall cycle of 2007 seriously and we will be devising an elaborate plan for risk control based upon our forecasts and market expectations. HIGH RISK AHEAD.

Fall Selling for Stocks, other Markets Becoming Visible with Early Signals

"Our fall 2007 markets predictions are showing signs of shaping-up as we have forecast. The large stock index markets should be selling and precious metals ought to be in a strong rally. We remain quite observant and respectful of the Plunge Protection Team and their abilities to twist and bend these markets to different trends. Never underestimate these market fixers and their power to temporarily make trouble for precious metals traders." - Traderrog"

Read the entire article HERE

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