Jan

25

My friend Rocky's view about calmness being continuous is consistent with the gestalt theory of least observable differences of Fechner and Redel. The frog jumps (has it been tested) when placed in boiling water but stays if it's gradually heated. One imagines one could go to jail for testing. (Certainly wouldn't make it to our web site since our editor is a vegan). Anyway, Redel always said that when they want to keep you in they go down gradually, but the big declines are the end of the decline. All must be tested for each market under different conditions. Nice declines in crude recently. 7 in row and natural gas.

John Humbert writes: 

I think it is important to ask a few questions about this move in Gold:

Is it driven by changes in inflation expectations, the ability of CB's to reign in liquidity, etc ? For example, gold spiked right after the ECB meeting, then after Trichet comments it turned lower.

There are a lot of other "consensus" views out there, and what might this portend for them if driven by the above factors or others? For example, equities, industrial commodities, currencies?

One need not look far to some of the short Euro long anything else trades over the past few weeks to see some consensus unwind.
 


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