My Home     About Me

2200 EST Wednesday November 16

Good Evening: Long term readers will know that when we start turning Dynamically Bullish on any stock, market, future or other issue, we are making a big statement that some kind of strong momentum breakout or parabolic upmove is about to unfold. And as we have reasoned, there are compelling reasons why Gold could surge up to $100 higher along with the rest of the precious metals group.

As we suggested yesterday, Precious Metals led by Platinum and Palladium could not be restrained from moving sharply higher and tonight, Platinum is touching $1000 oz in response to our statement yesterday, that the $1000 level is acting as a strong magnet for higher prices. Palladium continued to soar in concert and Silver did not disappoint bursting through the elusive $8 oz barrier late today.

A few weeks ago, we highlighted the similarities of Gold, Silver, Platinum and Palladium moving in tandem to new multi-year highs, as being very similar to the unified and sustained upmove in the Energy markets with Crude Oil, Gasoline, Heating Oil and Natural Gas all moving strongly together, once Crude Oil exceeded the $40 level and we suggested that on the same scale and timeline in the Precious Metals sector, that the breakout of Gold over $455 was similar to Crude's breakout over its previous resistance at or between $36 and $40, implying that given Crude rose to $70, that the potential for Gold and the rest of the metals to move substantially higher, a similar percentage amount to the Energy complex could mean some spectacular price rises could lie right ahead.

This Dynamically bullish move has already begun in earnest and as we pointed out last night, this kind of action is potentially very bullish, as it implies strong undertones that are powering sustained uptrends. From the concerted point where all this began so swiftly and suddenly just 2 months ago, Palladium broke out from a tight $185 range and has soared to $260. At the same time, Platinum has surged from $930 to almost $1,000 tonight and at the same time Gold itself and to some extent Silver also, in a very stealthy kind of fashion has been carving out potentially quite exceptional dynamically bullish patterns, that could provide sufficient market energy to power Gold and Silver very substantially higher. We are in effect morphing into a very rare Triple-Dynamic Bull mode of significance.

To understand the kind of pent-up power this can impart, the Stock Market Crash of '87 was the end result of a Triple Dynamic Sell Signal, an extremely rare event. In light of this, the implications of a possible unfolding Triple Dynamic Buy Signal, cannot in any way, shape or form be underestimated. There is a tremendous amount of pent-up momentum contained in the current dynamic make-up of Gold and Silver that has take years if not decades to foment and their undervaluedness is at an extreme level right here, right now.

What is so tantalizing is the way in which Gold has embarked on this current upswing. It is nothing short of Dynamically Bullish. Back at the end of May, just as all the Gold bulls were about to throw in the towel, Gold gapped up from its lowpoint of the year at $423 basis the December contract. The market rallied up to $450 and then fell back sharply and bottomed out on a re-test at $425, just before gapping higher on the London bombings, that basically formed a possible breakaway gap emanating from what was in essence a double, triple and even quadruple bottom formation for the year to date at that time. That move produced a $30 rise back to this time exceed the $450 level before again dropping back rather sharply, however this time in a potentially very bullish 3 wave corrective pattern.

Once again Gold turned on a dime and gapped higher in a 2nd breakaway gap, leaving a very bullish 2 day "Island Bottom" behind.

Island Bottoms tend to power markets substantially higher and Gold did not disappoint, breaking out above $455 with a "Double Day Double Gap before running into resistance up around $483. Then it came back in 3 very bullish corrective waves that came back to test the double day breakout gaps and was unable to fill the gap below $456 and immediately reversed higher in a very bullish impulse wave that we are still currently in and is now driving Gold to new 18 year highs. At the same time, this very bullish consolidation, between the $456 and $482 parameters has essentially separated this new bull phase from the action of the entire past year that had been well and truly capped at $355 or so. Since the previous double bottom or triple or quadruple bottom depending on how you measure it, drove prices some $60 higher, it is not inconceivable that at a minimum, the newly minted Dynamic Double Bottom just formed and already incorporating another breakaway gap from Tuesday's close to Wednesday's open, could portend prices at least up to $100 higher from the double bottom at $456. This is a very sturdy platform from which to launch a mega move and is the kind of formation that is "to die for" to traders. A similar pattern caused Live Cattle prices to soar from 60 cents in 2002 to new all time highs at 104. In addition in a very similar way to what occurred in the Energy Complex, the outer month precious metals are trading at significant and increasing premium over the current month. December 2009 Gold closed Wednesday at new 24 year highs at $574 in a clear and present extreme breakout.

The long term Silver chart looks tremendous and could portend prices towards $10 initially and later on to the $12 to $15 range. In short, out Triple Dynamic Analysis although proprietary, is a powerful elixir that when recognized for what it is as now appears to be unfolding and should be aggressively embraced for all of its potential, for whilst reasonable objectives of $555 to $600 now look quite achievable, back in 1979 on the last Multiple Dynamic Buy Signal, Gold soared in a near unstoppable advance to $875 and Silver exploded to $50.

Wednesday afternoon, ATSI Communications Inc ATSX announced a 176% increase in 1st Quarter Revenues for FY 2006. Following what could be a very bullish 3 wave pullback from recent highs, in an intriguingly similar pattern to Gold, ATSX came back and tried to fill its own recent breakaway gap at $0.24 and retest the highs of previous resistance, but like Gold, so far was unable to fill it and prices snapped back going into the close. Given the incredibly positive fundamentals on ATSX, it too could be soon unfolding as Dynamically Bullish...

Trade Well
From the Desk of Savant

Basic Materials sector   Technical chart patterns   support/resistance levels   ETFs (exchange traded funds)   Deron Wagner   iShares Hong Kong (EWH)   S&P 500 chart pattern   emini's S&P 500   earnings   economic data   Biotech HOLDR (BBH)   Emini's Nas 100   Short selling ETFs   exchange traded funds   sector rotation   etfs   corn futures   selling options   commodities   mcio