dinsdag 15 mei 2012

thinking about next week

next week what will happen

I think the IPO of Facebook is a mayor player to drive the price lower.

so if this idea is correct money isn't in available some much, because they needed to sell of commodities to go into the IPO.
So what will happen next week and where will the money follow to ..

Lets focus on Facebook , 3 things can happen
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1) Nothing will happen and the price will stay the same..
(commodities will stay the same and maybe keep dropping slowly or rise waiting on the next bad news out to Europa to drop or rise again)

2) It will rise very fast as Google
if the Facebook will double or more in a day or a week , the problem will be where will the money come from ? other stocks or commodities ??
To check this I looked at Google IPO and that time at that time. I don't see anything in the charts that will give me a hit. but that time the market was very different as now.
There was not a real influence at the commodity market looking at the charts, so the money will just pop out of nothing?
Also now there looks to be an influence of the IPO on the market (see the big drop) so this tell us there is a shortage of dollars and this will mean that there will be a problem if the Facebook stock will rise .. it can mean that the dollar even get stronger and drive the gold more down ..  and that a QE3 will follow soon
This will mean that the commodity will stay down for a long time 


3) It will drop ..
Then Gold and silver will explode because the people will go to the cheap commodity market and the dollar will be going down and the yen will rise again..
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I think option 2 will be the most interesting because this will force the silver price to 21 or lower and gold to 1200 .. and will force a QE3 this will make gold to explode together with the problems in Europa that then will follow then.

If this is correct I will need to wait until next week and look at the stock of Facebook and yen price (to check the strength the dollar). and then decide to buy silver again ..

i think many people will go crazy in this market because it is still possible that there will be a big drop and then they will miss it because they already spend there money .. and if they bought to much they will not survive the waiting game that will follow ..


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