Chan on Gold

September 17, 2005
Technical Analyst & Editor

The long anticipated major breakout #3 occurred this week, therefore, we are no longer swing trading the ETFs, instead, we are looking at loading up on gold stocks, and for those under funded, a precious metals mutual fund such as RYPMX or your own choice.

Bingo! Our breakout model finally registered BO#3, more than two years after the last one. As suggested a few weeks ago, I have my eyes on a basket of six golden rockets….

BGO/BGO

CBJ/CBJ

CDE

GSS/GSC

HL

PAAS/PAA

RYPMX - folks with smaller accounts may be better with a fund, I strongly advise against penny stocks as they are easily manipulated and very illiquid.

First symbol is US, and second symbol is Cdn. Single symbol is US only. This is my own portfolio, you can make up your own portfolio. If this is a legitimate breakout as history has shown, prices should not break below support on any corrections or pullbacks. In fact, the next buying opportunity should be an IP1, which may come at lower or higher prices, but not to exceed S.

I'll be watching for an IP1, which is a TLBBS off the 50ema support, I will send out an alert when that happens. That will be the final confirmation that we are at the beginning of a new bull market. You want to be onboard no later than the IP1.

In the meantime, I'm watching the hourly chart, waiting for it to become oversold, and begin to accumulate as set out in my plan below.

Summary

In order to avoid second guessing my trading models, I have no analysis this week. The COT data, the dollar, the Euro, interest rates, are all in a new ball game as the inter-market relationships among them will be changing, and some already have as we witnessed gold and the dollar are rising together while Euro tanked and yield curve steepening….

 

Jack Chan at www.traderscorporation.com

17 September 2005

Jack Chan is the editor of Simply Profits, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.

In every cubic mile of sea water there is 25 tons of gold

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