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Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: Mac who wrote (5241)	8/23/2003 7:34:35 PM
From: Little Joe	Read Replies (2) \| Respond to of 5423

CHART UPDATE We have five trading days left in August. By the beginning of September we should see the beginning of the seasonal strength in gold. 321gold.com The fact that gold stocks and POG have held up so well during this time of seasonal weakness has to be viewed as bullish. While we may see a little more weakness this week, I would not be surprised to see the markets up by the end of the week.. . In reviewing my charts tonight I noted the following: CRB – Has cleared resistance in the 237-238 area and appears ready to challenge the resistance in the 240 area. This important indicator of inflation continues to confirm inflationary expectations which is bullish for gold. stockcharts.com[m,a]dahlyyay[pb50!b200][vc60][iUb14!La12,26,9]&pref=G Dollar Last week I discussed the possibility of false breakout to the upside in the dollar. This did not occur and the dollar has clearly broken out to the upside. I did not notice last week that there is a head and shoulders bottom showing on the dollar chart.. The left shoulder was formed at the April highs, the head at the June lows and the right shoulder at the July highs. It should be noted that there is a strong down slant from the left shoulder to the right shoulder which is the weakest type of H&S bottom. At any rate it projects to a target of 102, probably lower because of the down slant. The red line on the chart is the 200 day moving average and it is possible, but I don’t think likely that the dollar will be turned back here. At any rate there were a few articles this week that gold appears to be decoupling from the dollar and that the POG is going up in terms of Euro Dollars. I have not seen any charts to verify this and I think it is too early to know if this will happen, but if it does I think it has strong bullish implications. stockcharts.com Newmont Newmont needs to hold here for the short term bullish case. If it breaks further I would be short term bearish the stock, but I am not sure the move will be playable, except for the most nimble of traders. The medium and long term picture remains bullish. stockcharts.com[m,a]dahlyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G GLG Continuing its consolidation after its breakout at 13. stockcharts.com[m,a]dahlyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G GG Needs to clear the December 02- Jan. 03 highs and it should be good to go. stockcharts.com[m,a]dahlyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G ABX As noted in my last update it has broken out and we are seeing the normal pullback. It is instructive to note that the stronger golds ran better after their breakouts. So I think Barrick will continue to under perform. stockcharts.com[m,a]dahlyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G AU Needs to clear resistance at 38, then it should be good to go. stockcharts.com[m,a]dahlyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G pdg This stock is consolidating and like Barrick does show strong relative strength. stockcharts.com[m,a]dahlyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G Gold Continues to tantalize us with the upside breakout of the symmetrical triangle, but it has not yet occurred, which I view as bearish because the longer we wait for this to occur, the more likely it is that it won’t. On the other hand the strength of gold during this seasonally weak period is a definite postitive. stockcharts.com[m,a]dahlyyay[dd][pb50!b200][vc60][iUb14!La12,26,9]&pref=G HUI No sign of a topl stockcharts.com[m,a]wahlyyay[df][pb50!b200][vc60][iUb14!La12,26,9]&pref=G I continue to think the bull is running. The fact that a lot of gold and PM stocks are over extended is worrisome because a strong correction could come at any time, but I think protective stops on any overextended gold position is better at this point than taking profits. In this kind of a market the liklihood is that you will leave some profits on the table. Of course, we always do, but I have been tempted to take profits in some of my positions which are up significantly after I thought they were over bought. In this kind of a market, the surprises will be on the upside. Little joe