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0600 EST Tuesday November 22 2005
Good Morning: Monday's trading session registered a decisive breakout to new all time record highs by the S&P MidCap 400, along with continuing probes to new records by the Dow Jones Transportation and Dow Jones Composite indices combined. This troika of indices charging to new records, is leading a thundering herd from the farthest reaches of the Globe demonstrated by the gathering intensity of numerous indices Worldwide hitting new multiyear highs to the very Heartland of America as proclaimed by the original MidCap leader and rather amazingly the Mexican Bolsa and other notable indices from around the World that initially began setting new all time record highs back in the Fall of 2003.

All year we have been counseling our audience to invest for the future now, comparing the current era to 1905 with a near 1000% advance thereafter and that of 1955 ahead of what turned out to be a near 50 fold advance for the Dow Jones over the next 45 years. We don't know exactly where we are on the grand scale of time, but what we do know and firmly believe, having never wavered is that we're in a new 45 year bull market that began in 1975 and went into strong impulse waves in 1982, 1991 and 2003. Therefore, if 1903 was the start of a sweet spot of the Industrial Revolution, then the same could be said today of the Technological Revolution.

We are in a synchronized Global market advance of epic proportions. There has never ever been anything like this. Many Middle Eastern and bourses of other Oil rich nations such as Russia, Norway and Mexico have more than doubled since setting those new all time record highs over two years ago and Mexico at 16,767 is edging ever closer to our now legendary 12 year target forecast level of 17,500, first called for in 1995. Our theory was simple enough: Likening it to UK's crisis in 1975, if the UK market could rise 1000% in 12 years, so could Mexico. We applied the same theory to Russia in November 1998 and the results were more sensational than anyone could have imagined. To witness perhaps the most dramatic national recovery in World history in Russia and see Mexico play out similarly, is humbling...

In the same way we were able to make these calls against all odds, we've also developed a sense for recognizing emerging trends: Back in January 2004, when we first christened this: "The Best Economy Ever", we also identified around a thousand issues that were clearly out-performing the rest of the market. Many of those companies were housing related and at around that time, we first noticed a preponderance of Oil related issues that were just starting out as unknown names on their way to becoming household names. Although it was hard to really understand the significance of this early action as a precursor to a Worldwide phenomenon, that became the international real estate boom and Global Energy bonanza, it did kind of remind us of the early days of the Internet Boom, wherein the earliest Internet related issues were suddenly popping like champagne corks.

Early in 2004, we first referred to those 1000 emergently fast growing companies as being in 'The Sweet Spot' of what we already were seeing as the greatest economy ever and as they were clearly outperforming the rest of the market decided to christen our new index as The SuperEconomy 1000™. The difference between this index and the Dow Jones Industrial Average and others, is while these major indices remain static for prolonged periods and are subject to periodic review and alterations, the SuperEconomy 1000™ is a dynamically changing index that tends to follow the winds of change in the economy and the whims of the smart money that powers it. While conventional wisdom dictates that we should try to follow the smart money on Wall Street: As a function of our Dynamic Real Time Quantum Analysis™, we began to realize that at certain times, we could preempt the smart money, by uncovering and recognizing emerging winners very early on...

The most amazing and rather surprising development of late, is how as the markets have embarked on this major new upswing and are now setting new all time records all over the place including an increasingly large number of Gold related issues, the SuperEconomy1000™ index has morphed into mainstream, where many of the issues that are now powering these markets to new records, make up an increasing percentage of the SuperEconomy 1000™. The most startling development, is how many Oil issues have been demoted off the list and how they've been replaced by Gold issues in ever increasing numbers. The obvious conclusions we can draw from this is, given how Oil issues began to appear almost 2 years ahead of the Energy boom, by inference, the current similarities with Gold nearing $500 are tantalizing and akin to Oil initially breaking above $35 and later $40 levels, (read Gold $450 and $500) as being highly significant ahead of what became 75% to 100% plus gains across all components of the Energy Complex ranging from Crude Oil itself, to Gasoline, Heating Oil and Natural Gas.

On the same scale, this could mean gains of 75% to 100% for the Precious Metals sector and might result in Gold prices as high as $900, Silver $15 to $20 at a stretch, Platinum as high as $1,750 and perhaps Palladium running to $500 ~ 600% or so, just the same as Natural Gas soared by as much as 150%. Palladium is notorious for its ability to soar to dizzying heights in the past. For what its worth, we are content to call for $550 ~ $600 as the next probable target range for Gold and $9 ~ $12 for Silver before some kind of consolidation sets in. While the higher targets appear quite credible, on the same long term scale as Crude Oil, Gold should ultimately soar to around $1785 during its next upcycle and this target may be reached sometime in 2009 with Silver $75 ~$120 oz.

Again, as we have stressed on numerous occasions over the past two plus years, when one index starts setting new all time record highs, especially one of the broadest of all in the S&P 400 MidCap index and representing the heartland of the economy and it is later progressively joined by more and more indices doing the same, the market is sending an incredibly powerful message that the economy is likely to get progressively stronger as has been increasingly happening since the S&P 400 MidCap Index first hit post recovery new all time record highs in the fall of 2003. And, at the same time heralded in several blowout quarters of very strong economic growth that essentially has enured to the present day in one of the most impressive economies in years, or the best ever.

Just this morning the headline at Finance.Yahoo.com is Nation's GDP expected to grow at up to 3.6% thru 2006. The real difference between this mid-point of the first decade of the New Millennium versus various mid-points of previous decades, is we're potentially starting from a much higher base, than most any of them ever lifted off from. At many decade mid-points, markets and economies were at very much weaker launch points. There's hardly ever been one that has been this strong for this long in the past 100 years.

In the same way, Precious Metals are now starting to do what the leading stock indices Worldwide have already been doing for two years, ie: Setting new all time record highs. Given that two years later, it's either continuation of the same theme or Deja Vu all over again with yet even higher highs now being set. So, with Precious Metals now setting multi-year to twenty year plus highs for both Platinum and Gold and appearing poised for higher levels: Where will we likely be, two or three years from now in Precious Metals?

Trade Well
From the Desk of Savant

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