GOLDBUGS AMEX Goldbugs Index (GOLD)

[DiscoverGold]

The Ord Oracle By Tim Ord

* Wednesday, February 22, 2012


For 30 to 90 days horizons SPX: Sold SPX on 12/29/11 at 1263.02 for gain of 1.75%; long 1241.30 on 12/20/11.
Monitoring purposes GOLD: Gold ETF GLD long at 173.59 on 9/21/11
Long Term Trend monitor purposes: Flat



Today GDX ran into the down gap on February 3 near 57 on lighter volume and suggests the gap has resistance. Support on GDX comes in near 55 range which is also near a 50% retracement. What may be developing here is a Head and Shoulder bottom where the Head is February 16 low. A pull back to 55 range would form the Right Shoulder. This potential Head and Shoulder bottom would have a measurement to 61 range which is the lower end of our target area. The intermediate term uptrend remains in tact and a target to 61 – 64 range is feasible on this run.



Above is the daily chart of GLD which is the ETF for Gold. In late January a “Sign of Strength” (SOS) appeared through the red downtrend line connecting the highs back to mid August and suggest a valid break through that trend line. The January rally also tested the early December high on equal volume and suggested the December high will be exceeded ( which is happening now). The pattern that formed the first three weeks of February was a “Flag”. The breakout of this “Flag” pattern came yesterday and the upper boundary of this “Flag” is now support which comes in near 168 range. Most “Flag patterns” form at the half way point of the move and would give a target for the next high near 187, which is also near the September 2011 high and could act as resistance. The trend appears up with short term support near 168 range.

Long GDX 58.65 on 12/6/11. Long SLV at 29.48 on 10/20/11. Long GDXJ at 36.24 on 9/21/11. Long GLD at 173.59 on 9/21/11. Long BRD at 1.67 on 8/3/11. Long YNGFF .44 on 7/6/11. Long EGI at 2.16, on 6/30/11. Long GLD at 147.14 on 6/29/11; stop 170 hit = gain 15.5% . Long KBX at 1.13 on 11/9/10. Long LODE at 2.85 on 1/21/11. Long UEXCF at 2.07 on 1/5/11. We will hold as our core position in AUQ, CDE and KGC because in the longer term view these issues will head much higher. Holding CDE (average long at 27.7. Long cryxf at 1.82 on 2/5/08. KGC long at 6.07. Long AUQ average of 8.25. For examples in how "Ord-Volume" works, visit www.ord-oracle.com.

http://www.decisionpoint.com/TAC/ORD.html

George.

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