Gold Charts R Us Someone froze the gold share market Harry Schultz snippet May 30, 2005 The following snippet is an excerpt from Harry Schultz' current GCRU, dated May 25, 2005. Gold Charts R Us - sent weekly by Email - $US100/mo for 3, 6, 9, or 12-month subscription periods (fax +$120 per 3-months) - you can subscribe here. 2-week trial of GCRU $45 -- yes, sign me up! Welcome to GCRU No.162 on May 25, 2005. •••Shades of Richard Nixon freezing prices all those years ago. For past week, someone froze the gold share market. Gold is virtually unchanged, off $2. Excitement, there was not. The bullish downwedge in gold widened but is still valid, just. Ditto the euro. Same as the bear upwedge in US$. No structural changes! Gold indexes rose from 2-5% depending which one U use, not a lot but better than a hit to the head. The Schultz Gold Share Advance/Decline Line rose the height of a toadstool, not much, but a frog pushed the Spinner to up direction at least. No such luck with bullion's Spinner though. •Bell ringer Newmont was unchanged Monday, which pretty well summed up the day, & the week! ••AngloAmerican was the best performer all week, but that was mainly due to the fall in the rand, which is great for all SoAfrican shares! But has little direct effect on bullion. Indirect, perhaps. The Gold vs XAU ratio is 5.09, after an intra-week rise to 5.30. Needs 5.50 for a buy signal, based on ancient history going back to the discovery of King Tut's tomb. Or maybe even the king's birth. In any case, not today. ••I did virtually no trading this week. U can't sail a sailboat without a bit of wind. ••Some vital news event could trigger a euro fall/rise or a US$ rise/fall, which in turn would shake up the sleeping gold giant. Meantime, we could get a small bounce in the gold shares, but we need a bit more time for generalized base action/strength to build/confirm a Spinner green light. ••I own one gold share with a 15% loss (forgot to put in a stop, shame on me), so I've now put in an order to sell on a minor rally, to reduce the loss to a more acceptable 10%. That's about all I could think of to do on Tuesday morning. Some excitement, eh? I also have a few orders in to buy at higher, breakout levels & a couple at lower big support levels. But not much. If gold closes under 417 for 1, maybe 2 days, I'll be shorting gold as a hedge against bullion & gold share longs. Incrementally, ie, short more, gradually, if the price continues to inch down. Insurance/hedging is what makes U live worry-free & big-loss-free. Sometimes the insurance is free, or even profitable (I try to do that; usually do) & sometimes it isn't free, but never mind the cost of fire insurance or stockloss insurance. •The alternative to shorting gold as a hedge is to buy the US$ Index, which I sometimes have done & will do again. I'll gradually start to do if it closes over 87.50, basis June futures. •••Strategy: watch for a breakout of the wedges, in euro, US$ & gold. Something's going to give. ••By the way, the euro is NOT collapsing despite the now near-certain French NO vote on the EU Constitution next Sunday. As I said in HSL this last Sunday (hope U saw): a No vote is not all that bad for Europe. In fact BigPicture-wise, ie, the Giraffe's eye view, we (G & me) see it as good. •••Re energy stocks: Warren Buffett just bought Pacific Corp. Sez he will keep buying energy stocks forever. I'm with Warren, longterm. Of course he can afford to sit thru corrections that some of us prefer to avoid & we don't all always pick winners, but loosely speaking, where can oil & energy go except up -as long as deflation is not a threat-which it is not at present. Inflation is still in charge. If that changes, U'll know it & I'll push the yellow lightbulb. Oil is going to $60 before very long, IMO. Its 3rd corrective leg down has approx hit my target. I said 46 +/- was my target. It hit 46.10. Close enough? •••Keep thinking, especially laterally. Lots & LOTS more follows for subscribers. Gold luck from your patient Uncle Harry. See U in the PS. The following indexes, mkts & gold stocks are reviewed this week in the full edition of GCRU: Agnico (NYSE & Tor) American Retirement (NYSE) Anglo American (Nas) Cameco (NYSE & Tor) Canico (Toronto) Cvs Corp (NYSE) Eagle Plains (Toronto) Fnx Mining (AMEX & Tor) Gold (NY) Int'l Game (NYSE) Labone Inc (Nas) Lihir (Sydney & Nas) Meridian (NYSE & Tor) Newcrest Mng (Oz) Newmont (NYSE & Tor) Novagold (AMEX & Tor) Orezone Res. (AMEX & Tor) Perseverance (Oz) Rio Tinto (NYSE) SGI SGS (A/D line) Sierra Pac Res (NYSE) Teck Cominco (Toronto) TREND INVESTORS USD (NYBOT) Viceroy Explor. (Tor) Virginia Gold (Tor) Yamana Gold (AMEX & Tor) 2-week trial of GCRU $45 -- yes, sign me up! 2-week trial of GCRU $45 -- yes, sign me up! All charts created with TradeStation by Omega Research 2000. ### Who is Harry Schultz? Chevalier Harry D. Schultz, KHC, KM, KCPR, KCSA, KCSS, is the highest paid investment consultant in the world at US$2,400/hour-US$3,400/hour on weekends (International Edition Guinness Book of Records 1981-2002). To keep in touch with developments around the globe, Harry draws from correspondents in many countries, plus mountains of international newspapers, magazines, and other data. At the top command posts of Harry's elite team are Chief Market Analyst, Paul Griffiths, and Research Editor/geopolitical analyst Gordon Frisch. Loyal HSL and GCRU subscribers in 90 nations are much more than simply names and addresses; Harry and his team consider them part of their cherished global family. Harry is regularly quoted in books, articles, and interviews and by other newsletters (the "alternative press"). Arthur Hailey, a longtime personal friend and HSL subscriber, based his character Lewis Dorsey in the bestseller The Moneychangers, directly on Harry Schultz. Harry has lived for extended periods in 18 nations, and shorter periods in many others. Knighted five times, Harry is a man for all seasons and a true citizen of the world. Contact: E-mail: HSLmentor@racsa.co.cr Fax: Costa Rica (506) 272-6261 Fax: Switzerland (41) 21 652 0525 Mail: POBox 622, CH-1001-Lausanne, Switzerland 2-week trial of GCRU $45 -- yes, sign me up! Copyright ©1964-2005 F.E.R.C. All Rights Reserved. Archives Reprinted with kind permission at 321gold Inc