Re: Dead Cat Bounce – Mike Maloney
The Dead Cat bounce is a very real thing unfortunately. There are a lot of interesting technical features in the markets as Mr. Maloney speaks about in these two fantastic videos. In addition, I am wondering if this community is aware of the “DOW/GOLD” ratio. Historically, it has reached as low as 1:1 (in 1980 last time we had a major scare). Here is a link to what I am talking about for those who are not familiar!
So what does this mean?
I believe that Gold and the Dow will once again meet each other in POG and DJIA. I believe this will be at about $5500 and 5500 DJIA. From there, it will be interesting to see what happens… because this time it is very well possible that the Price of Gold skyrockets and makes this ratio approach zero as the US Dollar is phased out of existence.
The economy is about to be put on hault in 2011… be prepared. I believe that financial markets will be taking the greatest hits. Inflation is coming to America on a level that is unimagineable to most people. Realize that if you are reading this post, you are not most people. Picture individuals who have never had an education on austrian economics (99.8%) of the population. Now realize that if you are reading this and believe in the price of gold, you are inadvertedily supporting Austrian Economic theory of sound money.
Wild times ahead! Use the internet to its full potential and research all you can! I have a website dedicated to this very thing if you check out my other thread.