The true and rare SKI gold bull market buy signal began on 8/09/05 at USERX, (the mutual fund that represents the precious metals markets for SKI) 8.07. The current price is 12.18 for a gain of 51%. The graph below also shows the 35-39 index buy signal that correctly predicted the great bull market break-out. The great bull should last for many more months to many more years, but currently is in a significant corrective phase. The intermediate high of USERX 13.41 was recorded on the historically amazing 8th consecutive day up, just 7 trading days ago on 2/01/06. The correction has carried us down 9% to 12.18 in the last 7 trading days.
If you are not familiar with SKI, I had been posting weekly Updates on 321gold since its inception some 4+ years ago after having used the indices that I'd developed in 1985 for some 20 years. I've recently initiated my own subscription website (as of Friday the 13th!! 2006) that uses my unique indices to predict the movement of the broad precious metals' complex. SKI is a pure timing service (I know, no one can time the market; smile) that focuses on three primary mathematical indices to mark critical time by price interaction points (not just time, not just price, but the intersection of time AND price). I am writing a special report this weekend on the characteristics of bull market corrections relative to the SKI indices.
You'll read predictions stating that the goldies are going down for another month, another 2 months, another 3 months, or another X years. The predictions state that the gold stocks will decline another 10%, 20%, 30%, or more. The mechanical SKI indices continue to say, "THIS IS A TRUE AND RARE BULL MARKET". The indices continue to work (after 31 years) in a manner that is amazing to me. I am hyped up today (2/10/06) because USERX fell more than anything else to 12.18. The SKI index (i.e., the 16-20 index) was at 12.17 today. Today the gold stocks fell into support at the exact penny that I was looking for. Is that the low? The answer depends upon your time frame: It's likely that we'll see a move up off of support but eventually THE GOLD STOCKS ALWAYS PLUNGE DOWN TO THE SKI INDEX SIGNALS, consistent with the free Updates that I wrote back in early January. These stocks ALWAYS retreat back to the indices. How often do I write with a definitive statement such as "always" or "will"?
How long do bull market corrections last? How far do they decline? I've written that my indices have difficulties calling some bottoms during bear markets and some tops during bull markets, but they are amazingly accurate in marking highs during bear markets and lows during bull markets. AN IMPORTANT LOW IS AHEAD OF US. SKIERS SHOULD ANTICIPATE PROFITS OF 50-70% ON THE ENSUING RISE.
This weekend's Special Report details all of the rises and subsequent declines during bull markets so as to help pinpoint the bottom. I detail the length and depth of every gold stock surge and plunge during bull markets. Declines of 10-12% in ONE day are normal bull market behavior. Last Tuesday's (2/07/06) 7% decline is common during a true bull and we will witness 12-15% gold stock declines in a single day as the bull progresses. The historical data provide the courage and the indices provide the buy point(s).
I am writing to report that
history demonstrates a recurring pattern marking the end of corrections
during bull markets. Such patterns involve specific time periods,
% declines, and SKI index signals that all occur simultaneously
to mark the corrective low. In brief, BULL MARKET CORRECTIONS
ARE RELATIVELY FAST AND HARD. (The word "relatively"
is the hedged word that requires a more explicit definition contained
in the Special Report).
The Special SKI Report, as well as my regular weekly Updates, are available this Sunday (and thereafter) by subscribing for a month (or longer if you're wise and cheap enough to want to save money) at my website www.skigoldstocks.com for the princely sum of $25 (for a one month subscription) or more ($200 for an annual subscription). And if you remember, I don't want a subscription cost to deter "the small investor" or "the person with special circumstances" from subscribing/profiting. If the above applies, write to me at email@example.com. I hate being a salesperson but opportunity is approaching.
P.S. The website has been a pleasure. Skiers are being supportive and nonjudgmental. Join me at the SKI scientific family for the knowledge, the experience, and the gold stock profits! If you're a long-term buy-and-holder, stay long until a 92-96 index sell signal, but for a few bucks you can enjoy my Updates, know when to add, and also know when the SKI bull ends! I'm a great salesperson with a truly professional sales pitch and that cute new graph, huh?
Jeffrey M. Kern, Ph.D., is an academic psychologist with a specialty in the measurement and prediction of human behavior. The communications provided are for informational purposes only and are not intended to be investment advice or recommendations for specific investment decisions. Dr. Kern is not a registered investment advisor, but is registered as a certified trading advisor (CTA). The information provided is considered accurate, but cannot be guaranteed. Investments/trading in narrow market segments or gold futures is for individuals willing to accept a higher level of risk for the opportunity of greater returns. Past performance is no guarantee of future performance. His website is www.skigoldstocks.com.
Communications should be sent to: firstname.lastname@example.org.
Copyright ©2002-2006 Jeffrey Kern. All Rights Reserved.