Newmont says Yandal hedge is nearly down to zero

12:08a ET Wednesday, June 11, 2003

Dear Friend of GATA and Gold:

Mike Hartman's quot;Today's Wrap-upquot; commentary at
Jim Puplava's invaluable Internet site,
www.financialsense.com, links support of stock
prices with the Federal Reserve's lately constant
intervention in the bond market -- something GATA
consultant Mike Bolser has been pointing out for
weeks now.

Here's an excerpt from Hartman's commentary:

* * *

One thing that I would like to point out is the market
action in the first and last 30 minutes of each trading
session. It just doesn't seem to me that this would be
considered quot;normalquot; market movement. It seems that
all of the significant stock market advances of the last
few days have happened at the open and at the close.

You could take this back much further in time, but
let's just look at the last three days. On Friday morning
the Dow shot up 165 points and got a little 20 point pop
at the end of the day. The last half-hour on Monday and
the first half-hour today were good for another 100 points,
and the final 30 minutes today was good for about 65
points.

For the last three trading days, the Dow has gone up
350 points, all in the first and last 30 minutes of
trading. During all three days, the Dow has fallen
badly through most of the trading session, but with
the intervention at the open and at the close, we
stand at break-even for the three trading days.
Please take a look at the chart above, and you can
see that this just doesn't look like a market that
is plodding its way higher. You can see it looks
like a big lift, then a steady selloff until the
next lift.

I believe money is moving from the Federal Reserve
Repo pool through the quot;institutionsquot; to the Samp;P futures
market. Last week I saw a floor trader interviewed on
CNBC and he made it clear that the institutions were
at it first thing in the morning to buy Samp;P futures, quot;in
size.quot; That would explain the abnormal market movement.

* * *

You can read the whole of Hartman's commentary here:

a href=http://www.financialsense.com/Market/wrapup.htmhttp://www.financialsense...

CHRIS POWELL, Secretary/Treasurer