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0920 EST Friday March 03 2006

Good Morning: Its pretty safe to say we have been unequivocably and uniquely bullish on Gold and Silver, when as recently as this week we made the case in various interviews and in this report for spectacularly higher prices over the next few years, believing as we do, that we are in a Deja Vu advance that is reminiscent of what happened exactly 30 years ago in 1976 when Gold and Silver were about to soar by 7 fold and more than 10 times respectively in one of the most stunning blow off moves of all time, going as far at to counsel our audience to obtain a chart of Silver and Gold from 1976 thru 1890 so as to gain some perspective and have a kind of template or guidepath as to what might unfold over the next four years in what may be a repeat performance that could dwarf all previous records. We even went as far as to say that we felt Silver was gunning for its 25 year highs at $10 and that upon taking those highs a violent upmove could ensue as metals could turn explosively bullish. We liken yesterday's stunning 45 cent gain in Silver (almost the limit move of 50 cents we stated might occur sometime soon) as being very similar to Gold breaking up through $450 and $500, noting how much Gold and Silver have now advanced since then and emphasized the point that Silver has essentially no resistance now between here and $15, which would equate to our target of $750 for Gold and we also went out on a limb earlier this week calling for huge numbers down the road in Silver as high as $75, $125 or even $175 over the next $15 years. We believe many Investors may have vastly underestimated the ultimate potential that a twenty-five year bull market in Commodities and Resources may hold. This is not your father's last 25 years of paper asset appreciation, it is the next 25 years where dwindling resources are going to have to satiate the growing appetite of an increasingly wealthy nearly 7 Billion World population explosion and where wealth creation is likely to happen at an unprecedented rate with escalating demand for resources.

We also mentioned how we felt early March should usher in a rally on Wall St and following a few days of upwardly biased volatility, most especially in the Networking Index NWX and Semi-Conductor Index SOX, (a potentially very bullish omen), we also stated we felt that any further upside in the SOX or NWX, could turn us increasingly bullish on Equities, especially if the S&P Dow and Nasdaq confirm this new upward trend by breaking out higher and taking out the resistance that initiated Monday's late afternoon selloff, and how a negation of that negative early week activity, ie a rebound of consequence and authority across the board, could turn Equities explosively bullish, however, we had to see if the SOX Semi-Conductors can really and truly pull it off this time and follow the Networking Index to new Multi-year highs.

That happened late yesterday in what really was a stunning day behind the scenes as the bullish backdrop on Wall Street began to again strengthen even on the back of a declining US Dollar, which we have previously stated could be very bullish for equities in this 2006 year and frankly, the late rebound in stocks was impressive enough late in the day and potentially sets us up for a strong weekly close as long as the employment numbers don't torpedo this renewed effort at a strong rebound and possible breakout to new multi-year highs.

It's worth mentioning again that the SOX index tends to be a very elastic index in that when negative it tends to under-perform the Nasdaq, but in a bull mode, it has a propensity to substantially out-perform and even over-extend on the upside to a very considerable degree just as it did with amazement in 2000 and frankly, a breakout over 550 on the SOX could potentially portend a move to 650 if not 750 or even higher with relative ease and might be a very bullish bellwether for Equities this year, especially the Nasdaq which in of itself looks close to breaking out to new multi-year highs and looks to be sneaking past the 2,300 level, potentially on its way to 2,400 and our long term interim target of 2,500 on the way to our even longer term prime objective forecast just under a year ago back in early May 05 of 2,800. The Tech Sector is beginning to synchronize in a developing powerful upmove that for the first time in 6 plus years is now firing on all cylinders.

As we suggested yesterday, the US Dollar was teetering on the brink of 90 on the Dollar Index and it would seem a decisive break either way could set the new trend... That trend broke sharply to the downside as we felt it likely would paving the way for sharply lower levels...

You may have noticed that MODAR has been all over Patriot Scientific Corp PTSC since the beginning of the year and as a consequence have racked up some impressive cumulative gains in this issue, potentially rendering it our stock of the year for now. What actually drew us to this issue was Hawk Associates www.hawkassociates.com as we were originally drawn to them by the number of issues they represent, consistently showing up on our Momentum Radar that is MODAR, but in particular because of the stunning volumes we have seen become evident over time in a number of their profiled companies. Unfortunately we missed the very lowest entry point on PTSC as it sneaked higher in a rather stealthy fashion, before it suddenly leapt higher on staggering volumes. Most of this past week and in particular yesterday, the money inflows have been almost unprecedented for a stock of this nature and price range for an OTC BB Company which yesterday had an astonishingly high Dollar $Volume of 47,770.159 on a stunning 10,648 trades reaching a very big market cap of $426.61. There's something pretty big going on at PTSC that's not unlike our call on AMPEX Corp 15 months ago, which soared by more than 900% in one of our best recommendations of 2004. We are going to elaborate more on PTSC this weekend which we think could go to $5 plus...

Trade Well
From the Desk of Savant

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