Gold Charts R Us
Welcome to GCRU #47 on Jan 22, 2003. And, again welcome to some new GCRU members. U did the right thing! J This gold bull mkt is only in its 1st major wave of 5 waves up. ••Gold bullion continued to outperform gold shares, with some days showing bullion up & many shares down. It’s transitional & not unusual. Some gold shareholders were reluctant to believe what they saw in bullion gains. ••Randgold led the pack again. ••I’ve recommended profitaking for last 3wks, so I hope U did! Now we await either: upside breakouts for new buy cues, or, weakness whereupon U can buy via your below-mkt already-placed orders, which will be initial purchases for some & average-downs for others. Continue strategy of holding core position (be it 50%, 60%, 70% of total) while trading (selling into every rally) the action portion of your portfolio (be it 50%, 40% or 30% of total). ••Despite no hot buy signals lately (above or below), momentum lines are bottoming at/near oversold extremes on many stk charts, which increases odds for uptick action of some sort. We then need to evaluate whether upticks are headed for new highs or just a mini up-leg followed by a deeper downside. The correction potential is 330, so be prepared for that psychologically & tactically (with orders). Much depends on whether NY bullion price breaks up or down from what appears to be a bearish upflag/wedge, as this is written on Tuesday night. Any such correction will be very short-lived. ••The longterm is assured, IMO. Tech work points to $400 gold in 2003. But not in a straight line! Thus, trading in/out enables U to triple your gains, vs the buy&hold crowd. ••The US$ is your measure of what gold will do. A $-rally equals a gold correction & vice versa. But the trends of both are clear: $ down, gold up. ••I’d appreciate hearing from U if U’ve taken delivery of gold bars, be it COMEX or elsewhere. Delivery is what makes gold go up, not buying paper shares. U should do some of each. ••Due to a gold stock merger, I had to delete a stock from the Schultz Gold Index & replace with another. We’ve recalculated past SGI performance accordingly. But SGI chart pattern hardly changed. ••El Dorado will be listed on Amex on Jan 23. New symbol: EGO. ••Thanks for your nice eLetters. Like this one” Dear Uncle Harry: Thanks for the Fabulous GCRU during its first year. I've made as much profit (ie, sold shares) as my net annual salary. Renewal is fast approaching so I would like to make sure that I don't miss any issues. Rick Clendenning.” Gosh, I didn’t realize how time flies—GCRU is almost 1-yr old. Our disciplines, dedication & diligence are working. Stay the course. May the goldforce be with U. Your alchemist guru, Uncle Harry
Eldorado Gold Corp (Toronto: ELD) daily chart: price in sharp reversal of Jan 6 downtrend via pullback & close above prior 2.19 closing high. Key momentum indicators whipsawed back into positive territory, as confirmed by upside cross in proprietary Spinner indicator. GCRU’s bought more at 2.14. Maintain orders to re-buy if dips to 1.85 & 1.75. Traders stop 1-dc below 1.30. If U R out, buy some on pullback to 2.25.
Royal Gold (Nasdaq: RGLD) daily chart: Jan 15 dip redefining neckline of possible H&S top to downside. Shorterm momentum oscillators showing slight easing of downside impetus at neutral levels, but signals are inconclusive. GCRU’s re-bought part of trading positions on dip to 23.50. Buy more/average down on possible weakness to 22.05 & 20.55, &/or buy big on 1-dc over 26.30. Trader stops 1-day close below 16.00.