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from Harry Schultz
Welcome to GCRU #37 on Nov 6, 2002. It was a quiet but firm week for gold, Wed to Wed. Bullion inched up a touch; the gold indexes (including Schultz Gold Index) all rose a little from small but bullish patterns; the stronger gold shares rose smartly. It was again an opportunity to judge/measure the weak from the strong. That saves U money for when all shares move up together it's hard to tell who is strongest. During a moderate mkt, like now, U can spot the better candidates more easily. Among those with strong RS (Relative Strength) were Royal Gold (again), Glamis, Harmony, Goldfields, Meridian, Newmont. U can judge RS for yourself, just compare the price action, one chart with another. If U move out of weak shares into stronger RS shares it obviously strengthens your pf (portfolio). Biggest plus for gold mkt was the further breakdown of the US$. Its price/chart patterns & tech indicators (eg, momentum) are all bearish now. Durban was a weak performer. Tan Range (TXN) announced good news in a gold mineralization discovery. I bought a bit. Goldfields (GFI) appeared in the NYSE biggest gainers list (+6.90%) on 10/29. Gold indices & bullion have made massive chart patterns that strongly imply that when/if they break out upside, the move will be very large. I'll alert U when we're at the edge of a breakout in certain shares & indexes. In bullion terms it would be aprox $330. If U study the charts U'll see there's overhead supply to work through. This takes time. The fundamentals for the gold bull mkt are incredibly strong. Those plus good technicals should give U confidence. Use this pre-breakout time to build/add to your core position (if not yet done). And lay plans for selling into strength from the 1/3rd of gold pf devoted to trading. Those profits will eventually pay for the entire pf so U end up with a zero cost pf. This takes time but it's worth doing. U surely noticed Agnico Eagle dropped sharply, due to a warrants issue, not our favorite form of fund raising but much better than derivatives. The price turned up after the initial 1-day shock fall. AEM fundamentals are 1st class, so no concern. Craig Langoria asks explanation re selling into strength (S on S) vs buying on breakouts (B on B). B on B is always good strategy. S on S comes after the breakout (B/O) when price has run up to aprox its B/O target. R.Van Waesberghe asks if I can include some silver stks in GCRU. They don't belong in a gold svc, but that aside, silver has behaved poorly for a long time & still does. Apex silver an example. Coeur D'Alene looks a sell, not a buy. Silver bullion vs gold bullion shows terrible RS. Silver may follow later. Silver used to lead gold. That it doesn't now is a weak sign. Reflects recession. Keep your powder dry for gold for now. Gold luck. Bye from your guru alchemist,
Uncle Harry
Novagold Resources (Toronto: NRI) daily chart, CAD$: price holding breakout strength from bullish down pennant pattern (despite disappointing action Monday). GCRU's went long at 4.60 & again on close over 4.90 (ie, at 4.94). Trader stops basis your dollar pain levels, but no lower than 1-day close below 3.95. Buy more on 1-dc over 5.60. Traders long from 4.60 place orders now to take partial profits at 6.00. ... NOTES: Australian mkts are 1 day ahead of US time. GCRU - Gold Charts R Us (18 gold charts each Wed, with buy/sell guidelines) - from Harry Schultz - sent weekly by Email - $US100/mo for 3, 6, 9, or 12-month subscription periods (fax +$120 per 3-months) - you can subscribe here. ### Who is Harry
Schultz? 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 HSL team are Chief Market Analyst, Paul Griffiths, and Research Editor/geopolitical analyst Gordon Frisch. Loyal HSL subscribers in 90 nations are much more than simply names and addresses; Harry and his team consider them part of their cherished global family. Mr. Schultz 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: __________________ |
