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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (18382)	9/10/1998 7:07:00 PM
From: Sergio R. Mejia	Read Replies (1) \| Respond to of 116866

THE TREND IS YOUR FRIEND by Steven Jon Kaplan Back Issue List Updated @ 7:00 p.m. EDT, Thursday, September 10, 1998. Talk with Steve Kaplan THE TREND IS YOUR FRIEND--According to Michael Kahn of Bridge News, gold stock indices have all broken above their relative strength trends versus the S&P 500 to indicate that it is their turn to outperform the general market. The same change in relative strength is even more pronounced in the energy stock sector. Weekly charts of spot gold prices show a long-term declining trendline from February 1996 coming in just above the current market. A trendline must be considered intact until the market moves through it, but the weekly relative strength index (not the same as the relative strength mentioned above) is showing a clear bullish divergence. Crude oil has not broken any significant trendlines yet, but it has pierced 2 less solid formations. First, the declining resistance line from the March 23 peak in the continuous contract, which is not officially a trendline, was broken to the upside last week. Second, the continuous contract has broken slightly above the lower speed line from the January 1997 top. The relative strength of the energy sector has been the highest for all eleven of the S&P market sectors since late August. Since energy, metals, and other natural resource sectors are considered to lag the market throughout the market cycle, this suggests that we are now in the final phase of the current cycle. In other words, when natural resource issues are the star performers, the rest of the market is already in a downtrend.