big money to flow into shares - great time4idc

Hey Guys

As we wait for these engineering labs with the high grade drilling assays for IndoChine to announce in the next few weeks, we need to continue to keep an eye on the following two indicators that will highlight where the market is heading.

NORTH!

The first is the Chigago Board VIX index. As we have stated before this index shows that the market S&P500 and in turn the Dow Jones moves into bullish territory when it falls below 20. The closer it moves towards 15, the higher the stock markets rise.

The VIX closed at a very bullish 14.47 on Friday the 16th of March 2012.

The other indicator to keep an eye on is the 10 Year US Treasury Index. When it falls below 2.00%, is shows that money is flowing out of stocks, commodities(hard and soft), precious metals and into safe haven US Govt Bonds.

When the index rises above 2.00%, then the reverse is occurring. Money is flowing out of Bonds, dropping the price of bonds, since more people are selling out of them, and Yields or interest paid on new bonds rise, to try and keep as many people into them. Simple supply and demand.

Last week, we saw the US 10 year Treasury Rate spike from 2.00% to 2.31%.

This means tens of billions of dollars have been withdrawn from Bonds and are now sitting in cash, ready to be invested into shares, precious metals like gold, commodities over coming weeks and months.

As we begin to see the milestone news from IndoChine about Mt Kare, we will see money flowing into the stock.

Cheers Nectar