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Gold Charts R Us Uncle Harry Schultz, world acclaimed gold guru Welcome to GCRU #77 on Aug 20, 2003.  Gold was looking good til suddenly storm clouds appeared: the $ moved up sharply, the euro dropped to a multi-month low & DJIA hit a new high. Bullion rose to 369 last Thurs, but refused to break out over the vital 370 level. The bullish consensus # for gold hit 78%, overbought. $ moved up to 39%, no longer in the basement but room to climb further. A new correction seems underway. Makes me want to revert to my instinctive 'grab-a-profit' when u can philosophy. After writing the 7 lines above, mkts whipsawed. Gold was into a correction on Tues, down to 357, but when the massive truck bomb went off at the UN complex in Baghdad, stock mkts & the US$ turned lower & gold turned up. This turnup probably won't last. News related actions often don't. So, I advise caution. It does however offer a chance to grab those profits I referred to above. Reminds me to remind U again to please place at least some sell orders in the mkt in advance, to make sure U catch intra week or intra day bounces. Eg, don't wait til X gets to 15 & then order a sale. Price will probably drop to 14 before your mkt order is hit. As I said in the latest HSL, try to be neutral in mkts, including golds. No rah! Rah! Be cool, calculating. The reality is gold stks have a lot of bad hair days, so not to sell when U have a profit is questionable humanoid behavior. Golds never have & never will just rise & rise & rise without stopping. They'll always rise & rise & fall & fall & rise & fall. Pay no attention to rah! Rah! analysts. Pay attention to: do I have a profit I can take today? Also: do we have a bounce from a corrective decline in a strong uptrend that I should buy? Let's treat rallies as sell opportunities, not the start of the rah! Rah! that will just keep going & going & going, That's Harry Potter stuff. If we get what seems a major gold break-out (eg, over 370) we can use a dual strategy of taking profits as they appear with say half your stocks & use trailing stops on the strongest half. That's compromise, which wins more often than a black/white strategy. Let's buy mostly on 1st bounces after dips, not quite so much on breakouts (of course some breakouts are more significant than others, which I'll try to identify with gummed labels  ). Thanx to many of U who are renewing your GCRU for 9 & 12 months. Oh ye of much faith. Note: date atop last GCRU should have been Aug 13, not 12. Please correct your file copy. I received the following email: "Subject: A Gold Community Public Service Message. Sent: Aug 18, 03. Mr. Sinclair: If U see fit, please pass this along to the community. "Turn off your TV's & stop surfing other gold sites. Kenny's regular weekend reports, Harry's annotated charts + GCRU, HSL, FMU (spend the money & quit whining) & Jim's daily commentary have proven to be an unbeatable combination. I can't believe people would go ANYwhere else for input. I've cut out 3/4 of my other reading & have become twice as productive (read: profitable). If U haven't figured out by now these guys are head & shoulders (no pun intended) above the rest, then leave your investing to someone else. Francis X. Werzinger Jr." Thank U FW. On that upbeat note, I sign off. PPPP: Be Patient & Practical; Practice Profitaking. Bye from your alchemist guru,
Uncle Harry
Schultz Gold Index (SGI) - daily chart - line & bar (8/19/03): New hi. Bull cue: 3-day close over 10.81, &/or renewed strength after dip to 9.75 breakout level. Bear cue: 1-dc below 8.65 & 7.89. Indicators: bearish divergence building in daily Spinner indicator via lower high when compared to price & negative cross in plot lines. Comment: throwback possible towards support of Jan-June peaks (9.40-9.75).
Schultz Gold Share Advance/Decline Line (SGS-A/D) daily chart -
line on close (8/19/03): Bull cue: 3-day close over 5062, &/or renewed strength after dip towards 4955-4980 support zone. Bear cue: 1-dc below 4910, 4885 & 4835. Indicators: Spinner in corrective bull mode (ie, negative cross above zero). Comment: weakness in Spinner & tentative break below July power-up trend warns of possible consolidation.
23 August 2003
Harry Schultz, Editor-in-chief
www.hsletter.com
HSLmentor@racsa.co.cr
POBox 622, CH-1001 Lausanne, Switzerland
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