| |
James E. Sinclair,
Chairman & CEO,
Tanzanian Royalty Exploration Corporation |
| | December 20, 2002
Technical Review: Gold & the Dollar after the Smoke Cleared
|
| | Gold:
Looks great to me. To determine the standing of any item you need to look at it long, medium and short. In terms of technical analysis that is monthly, weekly and daily in that order. What those charts read is some minor softness in the daily with the weekly and monthly quite strong.
This week had significant action as gold rose to the key number given you of $354.50 and reacted back into the very low $340s. If you had acted according to the strategy for selling 1/3 outlined in detail in the December 19th Heads Up; you are sitting pretty and unconcerned. If you want the heads up notices sent directly to you email me your web address requesting these notices and you will receive them. If you are holding your 100% core position you should be equally unconcerned.
Please review my editorial published today, December 20, 2002. I believe it is extremely important. I believe this report on the December 19th address by Federal Reserve Chairman Greenspan gives fundamental comfort to those that enjoy trading their gold positions somewhat. The trading rhythm now is buying the weakness and selling the strength, which may well provide a business for anyone wishing to participate.
The US dollar:
Draw the Head and Shoulders anyway you want and it spells trouble for the dollar. Add to that the seven-year major long term up trend is broken down and you can feel comfortable that the negative action of the dollar will support the positive action of gold.
Both Silver and the Dow remain unchanged from the last technical report of this week. Friday's action of the Dow was skewed by Triple Witching, an event created in the process of changing all investment to pure casino.
|
| |
| | You can view the Previous Chairman's Corner item: Mon Dec 23, 2002, The Gold Cover Clause/The Deflation Solution
You can view the Next Chairman's Corner item: Fri Dec 20, 2002, Federal Reserve Chairman Greenspan Confirms Governor Bernanke's Reintroduction of the Subject of Gold as Relevant to the Present Economic Circumstances
You can return to the main Chairman's Corner page, or press the Back button on your browser.
|
| |
