Saturday, September 10, 2005

ROTTEN AAPLE?? and VIXXED

Click to enlarge
I think after besting its bubble mania high by 30% the top is in, but a test again of 118 is possible before we turn down.The rise from the low in 2003( and the steepness of its climb) expresses the degree the FED flooded the market with liquidity and 45 yr lows in rates. The balloon was deflated and he couldn't stand being responsible so he reflated again, and now again with $69B in 2 weeks.

I am one of FEW who believe this is done not just because of Katrina, but to soften the blow when he disapoints and raises .25 on Sept 20th, just my hunch. We are either going to get deflated or inflated, to my seeing there is NO MORE middle ground left! Inflating is seen better than deflating because of RECORD DEBT, but inflating would bring with it HIGHER interest rates and a lower dollar (maybe GOLD senses it, but silver hasn't?) In the past the FED has shown an abhorance for inflation like terrets syndrome, we'll soon see.


*(great trade Matt)

Just as AAPLE hits a new high, this article casts doubts onto what is the near term driver for the stock. I am expecting the stock to experience some weakness ahead.

TXN was hyped but stock looks toppy. INTC was hyped at mid term and stock gassed 3%. NAZ underperformed compared to DOW.


Duratek

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