The Rupee Appreciation Vs USD is an illusion created by massive portfolio flows; this link will break soon. And Gold will become valuable, very valuable by end of 2010. Over the past decade we've been ecstatic about riding the price of gold 350% higher from $250 an ounce back in 2001 to more than $1,100 today. It's been a great run and it's not over, but I do have important advice for you on how to handle the next phase of this bull market. The bull market in gold is no longer at the ground floor like it was when this indicator told us to buy gold some 11 years ago, but there is still a little time and plenty of profit potential left. This means that stock selection, timing, and price are now more important if you are to manage risk and maximize profit.
When this indicator hits the sell line, it will be time to exit. The commodity bull market will be over.
 There is one final phase ahead in the gold bull market
Three Pivotal Strategies: What's so difficult? Sometimes just cutting through the haze and pushing public sentiment aside is daunting. Sometimes just overlooking the nonsense that you are being pelted with from the media and putting in your buy orders is more than some can muster. Anticipating change and investing proactively rather than chasing strength and investing reactively are difficult. Nevertheless, over the last few months, there has been a move into the U.S. dollar as a safe haven, and this has softened gold prices a little. Gold is going to begin benefiting as foreigners look beyond loading up with more dollars. China, India, and Russia are interested in significantly increasing their gold reserves. India recently bought several hundred tons from the IMF, and Russia and China are talking about increasing their gold holdings by more than 1,000 tons each. Foreign demand of this magnitude will act as a floor on gold. These big kids will be willing buyers during future weakness, and it is always wise to side with the big kids. Remember, gold is real money; and while some foreign currencies may gravitate into U.S. dollars, more currency investors will seek out gold from here on out. The Homeland Security guys are telling us there is a real threat of another attack on the U.S. in the next three to six months. Heaven forbid; but if there is another "black swan" event, gold will suddenly break higher, leaving underinvested folks chasing a tornado. I look for $50 to $100 dollar up days during the coming velocity stage. The inverse of the dollar rally has been to see gold investors take profits and push the regal metal back down from over $1,200/oz. The mining shares have likewise sold off to enticing downside support levels. The first quarter 2010 gold correction puts us face to face with a splendid buying opportunity. This may well be the last, best buying opportunity before gold breaks to new highs. The prospect at hand is confirmed by my near-term technical timing models. Gold is going to soar one more time, just like it did after correcting back to $865 in April 2009. This time, it should rally to at least $1,600, and I expect that will happen by the end of this year. I have been a gold bull since the Long Term Gold Indicator told us to begin shifting from financial assets into tangibles. We have been recommending gold since it was $250/oz. The final velocity stage - which is developing - will be to gold and the commodity sector in general. Second - buy some oil! The income genie lives in the energy sector. I see gold as an immediate buying opportunity, minding our specific recommendations and buy prices. However, crude oil is beginning to break out of the trading range it has been confined to since last fall. Crude oil has performed admirably, recently hitting $87.00 after bottoming out at $35.00 after the liquidity panic of 2008. The fundamental underpinnings of the crude market are turning decidedly bullish. If you want to be ahead of the curve rather than chasing the market - proactive rather than reactive - it is time to put some buy orders in under the market. New rally highs are bullish, but crude is getting overbought. Normally, it will settle back from April-May highs to seasonal lows in June. As energy comes off this summer, it will be time to buy select issues on our list if you are looking for slam dunk income and capital gains. It is difficult to find yield these days. There are few opportunities for you to find generous yields in the gold market, but gold is where you will enjoy the biggest capital gains over the next two years. However, the crude oil and energy sectors offer ample avenues to generating handsome dividends. The key is to buy the right stocks at the right price. Third - do not trust this stock market rally to continue much longer! Until the Long Term Gold Indicator says the commodity bull is over and that it is time to sell your gold, the only stocks you should hold are those advantaged by higher commodity prices. Late in 2008 while the stock market was getting drubbed, my work indicated that a surprising rally was going to begin in the spring of 2009. That rally launched in March 2009, and it has been relentless up to now. Timing models like Palio confirmed the move by locking on with buy signals and sticking with the trend all this time. The same indicators that warned us in 2008 to expect a strong rally are beginning to reflect readings just the opposite of those late 2008 bullish omens. Our work is looking as bearish now as it was bullish before the current rally began. Furthermore, my cyclical work looks very negative from spring into the fall of this year. The only positive I can offer currently is that my proprietary "Palio" indicator, my principal timing model for the popular averages, is still hanging on to its buy signal. That could change at any time, and a sell could be generated - maybe before you receive and read this. I can't forecast exactly when the model will kick in with a general stock market sell, but I can say this: Because of the increasingly bearish indications in my other cyclical and technical work, the coming Palio sell signal will be more significant than the average. You should be prepared. My recommendation is that you protect any stock not advantaged by higher commodity prices with stops. When Palio's sell signal triggers, subscribers will immediately be sent an online e-mail alert announcing the signal and detailing specific action to take. Once this rally turns down, commodity-advantage Since the market's high in 2000, gold (the commensurate tangible asset) has appreciated from $250/oz. to over $1,100/oz., or 340%. The Dow Industrial Average (the quintessential financial asset) is still down 20% from its high, and the Nasdaq is down a whopping 50% since topping out in 2000 – even after the remarkable rally we have seen over the last year. The Long Term Gold Indicator knows where your money should be. We are no longer at the beginning of the bull market in commodities, but we are not at the end either. The commodity bull will carry gold (and other raw materials, including crude oil) much higher. The gold bull will continue until the indicator hits the sell line on the chart above. Just knowing when to sell is easily worth the price of a subscription. Your subscription will include my new booklet The Investor's Toolbox. You will learn how to keep the Long Term Gold Indicator on your own. It is embarrassingly simple. You will discover how to tell on your own when it is time to sell your gold. Among other techniques, you will find out how to select price levels for stops and entry orders. The methods presented are not complicated. You can learn to improve you own investment skills and become your own advisor. You will learn about the three phases of every bull market and how the current commodity bull fits into this pattern. Let me just say this, gold is about to enter the final phase – the velocity stage – where prices will get crazy. Do you remember the insanity surrounding the dot com's in the late 1990s? The velocity stage in gold promises to be just as short-lived, but more dynamic. |
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