Where are we in gold cycle?

Answer the following questions:
1) Is the rate of inflation higher than 6 months earlier?
2) Are treasury bond yields lower than 6 months earlier?
3) Is the NAPM Purchasing Managers Index below 50?
4) Is the Gold/XAU ratio above 4.0

See below for yearly PMI
Month PMI Month PMI
Aug 2007 52.9 Feb 2007 52.3
Jul 2007 53.8 Jan 2007 49.3
Jun 2007 56.0 Dec 2006 51.4
May 2007 55.0 Nov 2006 49.9
Apr 2007 54.7 Oct 2006 51.5
Mar 2007 50.9 Sep 2006 52.7
Average for 12 months – 52.5
High – 56.0
Low – 49.3




When all 4 questions are answered yes, the XAU has soared at an astounding rate of 123.63% annualized. In contrast, when none of these have been true, the XAU has plunged at -53.21%.

Read these links for good essays on intermarket analysis:
http://www.gold-eagle.com/editorials_05/roy-byrne051007.html

http://www.netscape.com/viewstory/2007/08/24/-gold-stock-market-quote-says-buy/?url=http://www.bestwaytoinvest.com/greg-silberman-august-24&frame=true





Today on my Hardscrabble Golf course I shot 40 for the first 9 holes and ballooned to 50 on the back side. In golf I am always looking for the one magic move or secret that will fix my swing.

In my trading I have learned that there is no single indicator or "Holy Grail" that will unlock the door to consist profits. Hard work and discipline combined with attention to fundamental and technical analysis hold the keys to success. Good Luck and God Bless.