Hugh

Bespoke's Commodity Snapshot (6/10/08)

Totally meaningless trival. "Overbought" and "oversold" are overused terms that mean nothing.

If something is "overbought," Then is must be at the same time "oversold."

If a trillion ounces of gold were bought in one hour, one could look at the buyers and claim an "overbought" situation, where another observer could look at the sellers and claim an "oversold" situation. Overbought must therefore cancel oversold, making both terms suitable only for the braindead.

Charts are history. They tell us nothing about the future because the future of a complex economy is ruled by billions of variables on an hourly basis. That Iran may or may not be attacked by the United States next week, therefore sending gold to over $1000 per oz, might be hinged on the menstrual cycle of some general's wife. Where's the chart for that?

Its obvious to me that some people write only to chum for business.