A Very Special Report
Buy signal in gold stocks
Nov 12, 2005
The two year correction in
gold stocks appears to be over.
Our trading model issued a
buy signal today, ending the sell signal from early October.
Again, our leading indicator
alerted us to a possible trend change eight days before the actual
buy signal, and now with established support.
But what is really special
about the current buy signal, is that it follows the first weekly
BSBS (bullish support buy signal) ever produced since this new
bull gold market began five years ago.
And what is extra special,
is that this buy signal is the first daily BSBS (bullish support
buy signal) since the major correction which began almost exactly
two years ago.
And the last signal to join
the party will be the very long term monthly chart, which will
not confirm until the month is over, but long term investors
within our membership have been advised to initiate positions
with the current buy signal.
For those who are not familiar
with our trading models and signals, TLBBS is trendline break
buy signal, and BSBS is bullish support buy signal. BSBS is far
superior than a TLBBS, simply because a BSBS is buying the dips
of a bull market, while TLBBS is often a counter trend buy signal
during a bear market. By combining different time frames and
employing the same signals, we finally have arrived to a perfect
alignment, after a five year bull market with the last two years
being spent in a correction.
These past two years have been
very difficult to trade due to the whipsaw which is a natural
process during a major correction, and that appears to be over,
with the weekly 200ema providing the initial support, and now
the daily 200ema providing further support. New money can cost
average in at this point, because the next set up will not come
until prices are at much higher level where an IP (impulsive
phase) will likely begin. It is precisely at this point we would
exit our ETFs and funds and switch into a basket of gold stocks
for maximum exposure and higher potential profits. We have had
two IPs in this new bull market, one in 2002 and another in 2003,
both with phenomenal returns. We will see if this buy signal
will evolve into IP number three. Although the future does look
very bright, we will not become complacent and ignore risk management,
which has kept us above the water these past two years while
waiting for an opportunity like this. The current set up has
a risk of about 3% should the signal fail, and we will not hesitate
to exit and wait for the next signal. Let the market have
the final say.
Nov 12, 2005