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

To: Enigma who wrote (25527)	1/6/1999 5:15:00 PM
From: Giraffe	Read Replies (2) \| Respond to of 116814

buysignals.com Wednesday, January 6, 1999 Cash! This "New Year liquidity surge" in tech stocks should have more power than the "Santa Claus" thrust in mid-December. If the former only matches the strength of the latter, the target area for the next level of resistance (and potential bout of profit taking) will be $44.77 for the OTC Fund (currently $44.30 intra-day). Price typically continues in the same direction for 4-5 trading sessions following a Buy Signals' "continuation signal". Such an indication was given yesterday for tech stocks. Also supporting expectations for higher prices are heavy volume, 4:1 up:down volume and broad sector strength. Some concern is still warranted for the paltry number of new highs (128) and an unusually large number of declining issues (1050) with a +250 Dow. Both numbers should be in 400-500 range. These conditions are evidence that buyers are only willing to purchase a narrow band of high-cap stocks. At Dow +200, the OTC Fund held a +3.15% gain. It weakened to 2.6% and did not regain its high of the day at Dow +250 - reason enough to suspect this sector will take a rest headed into the weekend. A break of this momentum is inevitable and will be a reentry opportunity, presumably at lower prices. Barring last hour weakness, we should lock in a healthy gain for our one day of risk exposure. Gold stocks are lagging with gold near its high for the day. Even though we are not invested in gold stocks, it will be interesting to see if today's short-term "sell signal" for the XAU index is accurate. A 6% pullback to XAU 63.4 might produce a buy signal as weekly indicators have turned positive at a time when gold is seasonably strong.