Fear Subsiding

  • October 10, 2001
  • Eddie Kwong

On Wall Street, fear is the opposite of greed.

When people are fearful, they “head for the hills,” running to cash
— and gold. After the events of September 11, precious metals shot up to
five-month highs. The stock market fell out of bed.

After the initial shock wore off and the initial swing low was established,
the stock market rallied nicely. As the fear ever so gradually diminishes, the
market climbs — and gold drops. 

Notice that the Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating) has dropped all week,
reflecting the lessened fear. The index broke its 50-day moving average, as well
as an uptrend.

Eddie

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