Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Crazy Fools Chasing Crazy CyberNews -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (1608)	8/18/2002 7:56:08 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 5140

Gold & Silver Review of 8/15/02 December Gold: NOTE: The next Review will be on the 19th. In the first three hours of the session gold was catatonic, but a mid-session sudden spike in light volume shook traders up and gold ended at $316.1, up $2.6. The dollar was mostly flat, financials sold off, energies were up, the CRB was up, and stocks were all over the board. There are many who make a strong case for buying gold. Thom Calandra of CBS MarketWatch.com interviews Rick Rule of Global Resource Investments. Mr. Rule has some incisive views, such as: “"I am very much of the view that the 20-year bear market in gold coincides with the 20-year bull market in the dollar,"…"Gold will come to supersede the dollar as the reserve currency of choice among central banks." Rule sees central banks, long sellers of bullion as they replaced their gold reserves with paper assets, giving gold its day in the sun. "I am of the belief that if the dollar continues to soften and gold continues to strengthen, most central bankers, who are anti-contrarian, will go out and buy gold," he says.” Even though gold is $35 higher from where it began the year, the rally has been somewhat tepid. Considering variables that supposedly would cause gold to blast off are seemingly with us, why hasn’t gold done more? Mark Lewis of Forbes recently wrote a great article, “Fool’s Gold”, which really puts quite a bit in perspective. He says that $30 to $50 rallies are expected, but overall, gold will remain relegated to the bench. I’ll be glad to email anyone a copy of both articles, ask me at erik@altavest.com. Intermarket relationships and fundamentals are rife with complexity and intricacies and it’s painfully difficult to put a finger on the pulse of every possible variable. So, the bottom line is to be adept at "trading" the market, freely enter and exit on the short or long position when warranted. From a technical perspective, there is support at $310.8 to $312 area and we’re still within an expanding triangle that targets the $325 area. Some might even argue that an inverted head and shoulders has formed, which would be bullish. However, solid Fibonacci resistance near $319 is still holding. Even though prices have rallied in the last month, volume has slipped the last couple of weeks, which is a sign of indecision. To open an account and get our specific trading recommendations on gold futures or options contracts, and other markets too, or to use PaperTrader Online contact me at erik@altavest.com. Visit Altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading. September Silver: After bulls were dragged through the mud yesterday, they brushed off some of the humiliation and pushed silver a shade higher to end at 448.3, up 2.5. Since mid July prices have dropped as much as 70-cents. We are below moving averages and prices did form a bearish engulfing line yesterday. Neutral to bearish action is likely, especially if a stronger stock and dollar market coaxes gold lower. If you are interested in our PaperTrader Online service or trading futures or options, contact Erik at erik@altavest.com and visit us at Altavest.com to request our free Starter Kit. Keep in mind that there is risk of loss in all trading. goldseek.com,