Below is a commentary extracted from ChartWorks on 17th October2005.
• Thursday's edition of Pivotal Events concluded that the stock market decline could take a pause.
• In looking at the damage, on Friday Ross noted that the relief rebound was at hand.
• Using the Dow as the proxy, a bounce to 10,450 - 10,550 is possible and it should be sold.
• So long as the gold/silver ratio stays in the recent range (60 to 63), the stock market could do the "stair-step" decline.
• Often severe liquidity concerns have been signaled by silver falling relative to gold. Should this occur soon, the stock market would take on a more urgent decline.
The following cartoon is a collaboration by Bob Hoye and David Brown. It represents a forecast on the economy and is a comment on the specious notion of a managed economy. Why Wall Street, the bastion of capitalism, is so reliant upon the socialism of policymaking remains a mystery.
