Strategic Resources, LTD.(fka SGCR)

[Hilander]

Ad1, GOING LONG THE MARKET:
Again these notes are from my Journal, so they are my opinion.

Long - Investors who go "long" simply own stock or another security. It is a term that means the opposite of "short," in which investors are short a stock or security because they have borrowed it and sold it to someone else.

ARTICLE:
Enrico Orlandini’s
The Bull Lives!
October 21, 2005
DOW THEORY ANALYSIS SAC formerly LASCO REPORT
Miraflores, Peru

First Phase:
The typical Bull Market can be divided into three phases: Phase 1, characterized by the entrance of so-called "smart money." These are large, sophisticated investors who like to get in at the bottom and sit through the entire move up. Think Rothschild! They can move tremendous amounts of money and never leave so much as a ripple in their wake, and they don't just go in and buy everything in sight either. No, they'll start with a relatively (to them) small position and accumulate on dips and over a period of months, sometimes years as is the current case with gold. It is my opinion that we've just finished the First Phase of our Bull Market in gold. Think about this; these folks took four years to build a position. Meditate on the patience and discipline required to do such a thing! They wouldn't go through such a laborious effort for a typical Bull Market that lasts twenty-four months. That alone tells you that this particular Bull is something special.

Second Phase: This is where the Merrill Lynches and J. P. Morgan's of the world suddenly discover that something big and mysterious and wonderful is happening and their customers should reap some of the benefits. That's where we're at now; we've just begun the second phase, and this is typically the longest and most difficult of the three levels. In the Weekly Chart shown above, you could identify the beginning of the second leg with the September breakout above 450.00. Now you are going to see that the Bull will do everything in its power to get you off of his back. Also, getting back to the time issue, I want you to think about something. If the first phase lasted four years, and the second segment is typically the longest, then we won't see the beginnings of the third stage until sometime in 2009! That's a generational Bull Market, i.e., once in a lifetime, and that's why the big money took such pains to establish their position.

Third Phase: Should be the last stage. This is where you pull into the local neighborhood gas station and the kid who fills your tank tells you about some junior mining share that he bought and how it rose 50% in a month. It's the blow-off stage where we go higher, faster than anyone thought possible. It will also prove to be the period where the most money will be made. I suspect this stage will last anywhere from one to three years, into 2012, and should top out at US $2,500 an ounce. This is what a generational Bull Market looks like.
Now I want to throw in a caveat.

There just might be a Forth Stage whereby we see a collapse of economic, moral and political structures in the U.S. and a disappearance of the dollar along with it. If and when that happens, all bets are off. We came close in 1907, and again in 1929, but we were a different nation then. The average man on the street had values, family mattered, and we produced something. My fear and suspicion is that this time we reach the tipping point and over she goes. The decline and fall of the Roman Empire comes to mind. Something so terrible that a whole nation could just up and disappear in what seems like an instant!