The Chart du Jour

AUD - Oversold

March 26, 2001

By, Barclay T. Leib


Chart constructed using Advanced GET End-of-Day

This morning Bloomberg radio was espousing the virtues of U.S. government bonds as a safe-haven investment, almost as if their copy had been written in the middle of last week instead of today when stocks are already turning higher and U.S. T-bond futures are starting to lose a bit of their recent lustre. Does anyone really think that a ten- or thirty-year investment at sub 5.5% is really that attractive? We certainly don't -- particularly given our bullish outlook for gold.

But for those so burned by the equity market of late not to trust jumping back into the current rally, what might offer a more attractive place to park some money? At sub-.50 cents we think the Australian dollar looks pretty attractive. At least on a daily basis, we think the Fibonacci rhythm of the AUD looks complete, and the RSI is turning upward. After a relentless fall that has seen the Australian dollar decline from above .80 cents in 1996, the current region represents approximately 61.8% of those former highs. Japan is reflating, and some of that excess output of their printing presses should migrate southward within the Asian time zone. Although the Australian economy is still soft, the RBA is also likely to lag any further FED easings given how weak the Aussie dollar has recently been.

The Australian dollar is also fundamentally cheap by almost any measure: approximately 20% undervalued to the U.S. dollar on a purchasing power parity basis, and with a falling current account deficit as opposed to the burgeoning one in the U.S.

And oh yes, Australia does of course produce gold, and should benefit from any coming price improvement in that metal.


Subscribers are invited to click here for immediate access to our latest in-depth article: "Measuring Financial Time: The Magic of Pi." The article is 10 pages in length, and in it, we touch upon two centuries of financial history. We also leave readers with our cyclical vision for the next decade, as well as a shorter term perspective of the NASDAQ 100 index for the balance of the year.

Non-subscribers are invited to sign up for a quarterly subscription below.

It also may be of interest to some as well that because so much time (and thus timeliness) has now transpired, we recently released three of our 2000 subscriber-only articles. These now appear under the public Earlier Articles section of the website. Perusing through them may give one a sense of the added premium level of analysis we provide to subscribers.

For immediate web-based access to our latest subscriber-only March 20th XAU chart analysis, please support Sand Spring Advisors and purchase a quarterly subscription below. Our latest work will be accessible on the final page of the order process. A user-id and password for web access to all past and future articles will follow by e-mail.


How Your Articles Are Delivered
Upon the processing of your credit card or the receipt of a personal check, Sand Spring will e-mail you the articles requested as a Word attachment, and also provide you with a WWW address and password to view the article on the web without using Word should you so desire. Confirmation of your order will be immediate, and the actual article will follow by e-mail typically within a few hours and in all cases before the opening of NYSE trading on the following day.

Ordering by Credit Card:
Our shopping cart is designed for both physical and subscription products, so do not be confused too much when it asks you for a shipping address. A correct address is important only for credit card authorization purposes. Your e-mail information is the most important piece of information to us for proper delivery of your article(s).

Disclosure Statement

Sand Spring Advisors provides information and analysis from sources and using methods it believes reliable, but cannot accept responsibility for any trading losses that may be incurred as a result of our analysis. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities, and should always trade at a position size level well within their financial condition. Principals of Sand Spring Advisors may carry positions in securities or futures discussed, but as a matter of policy will always so disclose this if it is the case, and will specifically not trade in any described security or futures for a period 5 business days prior to or subsequent to a commentary being released on a given security or futures.


If you order by credit card, your credit card will be billed as "Sand Spring Advisors LLC"

Should you have any ordering problems, please contact us at
973-829-1962 or by email at the address below:

information@Sandspring.com


Take me back to the Sand Spring Home Page


Comments or Problems


Thank you for visiting Sand Spring Advisors LLC, Inc. We hope to hear from you again soon. For more information on Sand Spring Advisors actual programs, services, or to request a copy of a Disclosure Document, please phone us at 973 829 1962, FAX your request to 973 829 1962, or e-mail us at
information@Sandspring.com

Corporate Office:
10 Jenks Road,
Morristown, NJ 07960
Phone: 973 829 1962
Facsimile: 973 829 1962

Best Experienced with
Microsoft Internet Explorer
Click here to start.

The material located on this website is also the copyrighted work of Sand Spring Advisors LLC. No party may copy, distribute or prepare derivative works based on this material in any manner without the expressed permission of Sand Spring Advisors LLC

This page and all contents are Copyright 2000 by Sand Spring Advisors, LLC, Morristown, NJ