SECTOR ROTATION, CHINESE KRAP, BOIL THEM IN OIL

WE got sold out. My rare political tirade, Bush, Greenspan sold us out. I don't knowo about any secret society one of my friends keeps talking about, I am talking about the shift to an even MORE debt dependent consumer driven Service sector society.

With out WMT Chinese outlet $$$$, the CHinese are going around the world BUYING up NATURAL RESOURCE companies, investing in Canadian energy companies, securing their oil driven commodity hungry consumption future.

At the same time they have begun building and strengthening their miliatry, upgrading their technology. Are the CHinese closer to EUROPE than we are?

Chinese demand has driven up the cost of energy and commodities with COPPER reaching new heights, the cost of STEEL skyrocketing. Now even URANIUM is on the move.

http://stockcharts.com/def/servlet/SC.web?c=PGH,uu[w,a]wallyiay[pd20,2!b50][vc60][iut!Ub14!Ua12,26,9]&pref=G CHART OF PGH ENERGY TRUST

ABove chart (again I appologize I cannot figure out how to post the ACTUAL chart so you can see as I describe) shows weekly and probably MONTHLY overbought Canadian Energy Trust.

I could list any of them, and I bet chart is similar, MANY or MOST are CAnadian, some oNLY trade there, LIKE SHININGBANK, pays near 14% dividend!

Some others PVX, PWI ERF. You can do simple net search for even more, and see what % they pay.

You can see after brief pullback last April they were a freaking SCREAMING BUY! I have owned PVX PWI and PGH, when they weren't cool to own, made $$$$ on capital gains and dividends, but I must prfoess, EXITED WAY TOO EARLY and did not re-enter. THIS WAS a group to buy and hold, reinvest dividends and buy the dips.....if ever there was one!

And is why so important we look at SKIMPY SPX and DOW yields, and must ask WHY SO LOW? WHY NO RISK PREMIUM? And my answer is the BEAR has MUCH work to do, to return markets to balance to HISTORIC NORMS.

IT IS ALWAYS "REVRSION TO THE MEAN" It has been over 70 YERAS since our last DEPRESSION, and G-d HELP US, we are in WORST condition NOW to deal with it then in 1929!!! Then we had savings, then US was NET CREDITOR to world. THEN MOST ASSETS were in liquid stocks, now AMERICANS WEALTH is tied up in NOT SO LIQUID REAL ESTATE.

http://stockcharts.com/def/servlet/SC.web?c=wmt,uu[w,a]wallyiay[pd20,2!b50][vc60][iut!Ub14!Ua12,26,9]&pref=G WMT, the largest IMPORTER in CHINESE "stuff" has gone NOWHERE in last 5 years!!?? If buying LOW and selling HIGH isn't good for WMT, what does this say about ALL the CHinese krap we import?

And it isn't just that anymore, they build Airplane, Yatchs, Kitty Litter......FURNITURE, and some VERY HIGH END types as well, VERY WELL MADE.

US companies are losing business to them hand over fist......or they decide to IMPORT and sell under their name.

http://www.technicalindicators.com/gold.htm Interesting site for watching commodities.

Back to energy. Can the uptrend in those stocks continue?

MANY think so, but IF economies slow, demand will slow, hurt CHinese economy, demand for commodities could lessen or wane, stocks would be impacted.

OR

We are looking at a much longer term trend. I WISH I could see into the future.

GOLD, Greenspan is flooding the Banking System at the rate of $trillion a year!!!!!! HE IS INSANE!!! HE IS EGOTISTICAL. HE IS AN IDIOT.

Destruction ofour manufacturing base, Our Service Sector going same route, and if interestrates RISE more quickly, an IMPLOSION of the recent DEBT INDUCED REBOUND will ensue IMHO

TAME CPI????? MY ASS! WITH CRB hitting Historic highs, COPPER OFF CHARTS
http://stockcharts.com/def/servlet/SC.web?c=$copper,uu[w,a]wallyiay[pc20!c5][vc60][iut!Ub14!Lh14,3]&pref=G

I am sorry, this is one Cowboy, one BOZO who just doesn't like what he sees!

TOTLA CREDIT DEBT http://www.economagic.com/em-cgi/charter.exe/frbz1/fl894104005+1990+2004+0+0+0+290+545++0 ONE LOOK

AND LASTLY

http://www.contraryinvestor.com/2004archives/mofeb04.htm SEE FIRST CHART. We are at 305% of GDP an HISTORIC HIGH.

http://www.gold-eagle.com/editorials_02/chapmand062902.html A MARKET LOW in 2006?

With ALL my sources, I hope to for myself and my loyal bloggers, keep us safe, and be ready to POUNCE when the ultimate Bear MArket lows appear.

ALL THIS JMHO, but I have history on my side and as a guide, and the venerable Richard Russell whispering in my ear.

Duratek