THE VALUE VIEW GOLD REPORT
Ned W. Schmidt, CFA, CEBS
TRADING THOUGHTS is about what the name in implies. The purpose of this publication is to promote timely and profitable trading of precious metals. We do not believe every turn in the market can b e called. Our goal is that our recommendations should be profitable. These goals are not the same. Profits are the goal. Trades are not the goal. DO NOT EXPECT ALL RECOMMENDATIONS TO BE PROFITABLE. No system can achieve that lofty goal. TRADING THOUGHTS is not intended to be a lengthy news letter filled with witty comments. The goal is simply to state whether conditions in the precious metal's market are favorable or not. Traders are advised that unless they have exceptional experience not to trade against the basic trend. Trades against market trend not expected to be as productive as those with trend.
Basic Trend: Gold: Up
Investors should focus on Buy signals. Strategy: Positive, per Investment Policy of Oct 2004. Investment Policy: Looking for buy signals, and holding long-term core position.
Gold moved Friday to the low end of the short-term trading range that had developed. The price went on to rally
strongly late on Friday. Down though
does seem to be the short-term
tendency for the coming week.
Short-term indicator, graph to right,
gave a Buy signal on Friday's late
setting. However as plotted in the
graph below, the intermediate indicator
is not yet to a Buy signal. Moving in
that direction, but will take a few more
days. The short-term indicator does
tend to lead the intermediate indicator
as one would expect by those descriptions.
How will this situation resolve itself?
The rolling consolidation will continue
through the week. A breakdown to
$450, or even below that, is certainly
possible. Such a development would not
be cause for concern. At that price
some buying can be done.
As just about everyone with metals has
profits, likelihood of any year end
selling is low. Gold and Silver both
likely to put in bottom and move to
new cycle highs before year end. Saint
Nick likely to bring sweets in the form
of higher Gold and Silver prices.
Basic Trend: Silver: Up
Investors should focus on Buy signals.
Strategy: Positive, Per Investment
Policy of October 2004 Investment
Policy: Emphasize Buys
Silver is sending off a difficult picture
at the present. In the short-term graph
to the right, the indicator is moving
rapidly toward over sold. If Monday's
actual price is below $7.60 a short-term
Buy signal will develop. If above
that price, Buy signal will be deferred a
few days. Silver trying to give a short-term
Buy signal this week. Will really
have to wait and see. The intermediate
indicator is not as far along. That
measure is far from a Buy signal, but
moving in that direction. Silver is
trying to put in a Buy signal at about
$7.50 which would be consistent with
the chart pattern. Will be late in week
before intermediate indicator can give
a Buy signal. Will advise if it does.
Recommendation: Hold your existing Gold and Silver positions for higher prices, and further profits!
Ned W. Schmidt, CFA,CEBS
Click to email me: nwschmidt@earthlink.net
23 October 2005
Ned W. Schmidt,CFA,CEBS is publisher of THE VALUE VIEW GOLD REPORT. That report now
includes a weekly message, TRADING THOUGHTS, to help investors identify timely points for buying
Gold and Silver. You can join him for the Gold Super Cycle at
http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html His monumental report, "$1,265
GOLD", which has now been read in 12 countries, has 255 pages and 98 graphs, is available at
www.amazon.com or from the author. Ned welcomes your comments and questions. His mission in life is
to rescue investors from the abyss of financial assets and the coming collapse of the U.S. dollar. He can
be contacted at nwschmidt@earthlink.net.
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