Oil Service triple top breakout

YEAR END REVIEW OF MY TRADING RULES

TRADING GOLD STOCK RULES


1. FOR PRECIOUS METAL STOCKS TRADE ONLY BULLISH P&F
STOCKS—
SECTOR ALLOCATION P&F MUST CONFIRM
2. TRADE ONLY WHEN $GOLD:$XAU RATIO CONFIRMS BUY & SELL
3. TRADE ONLY WHEN STOCHASTICS AND MACD CONFIRM


TRADING RULES BROAD MARKETS

1.INVESTORS BUSINESS DAILY CONFIRM MARKET DIRECTION
2.TECHNICAL INDICATORS CONFIRM
3.$BPNYA SHOULD CONFIRM
4.IBD “A” RATED STOCKS
5.ZACKS “1” RATED STOCKS
6.FOLLOW P&F SECTOR ALLOCATION


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TTES added to my watch list

Point and figure charts signals bullish sector for oil services. I plan to take a position in TTES soon. I am also considering an ETF:OIL Service HOLDRS Tr. I am watching distribution days for broad markets with concern but I remain bullish for oil services, precious metal stocks and gold. Today the Gold/XAU Ratio is 4.76. Gold closed up $11. I look for gold stocks to break out soon.

M3 reconstruction shows explosive growth

The Web site referenced below did some sleuthing and data extraction and put M3 back together from various weekly Federal Reserve reports that are still available. http://www.nowandfutures.com/key_stats.html

The formula they're using has five 9s correlation to the original data back to 1980.

There is only one missing element that is apparently no longer available (Eurodollars) and an adjustment has been applied to generate it. Its only about 3% of total M3 so should not have a material effect on the total.

You can see from the chart why the Fed no longer publishes this data.

Gold and Gold and Silver stocks higher

So you think inflation is being controlled by the Fed?
See this link
http://www.kitco.com/ind/dorsch/dec202007.html




The low pole reversal (see XAU chart) is seen when a chart falls below a previous low by at least 3 boxes but then reverses to rise by at least 50 percent of the fall. The reversal implies that the supply that was making the prices fall has been absorbed and demand is taking over. The pattern is an alert that higher prices could be seen in the future.











Today was my 43rd anniversary. Margaret, my beautiful, gracious wife has been accepted to the WilberForce Centurion Program. She is a retired EdD history teacher at UA Fort Smith.

I continue to practice ENT surgery full time. We saw our Texas family members at Thanksgiving. We were able to see them on a web cam Christmas morning opening presents. In the afternoon two of our very best friends Dr. Rex and Judy Russell dropped by and we sang Christmas carols. Rex is recovering from a severe coma--a recovery I would describe as nearly miraculous. He is the author of the best selling book What The Bible says about health living. http://www.amazon.com/gp/product/0830742867/ref=sip_pdp_dp_0

Many years ago Rex was a co-author of a medical paper we published--Gelfoam Embolization for Intractable Epistaxis--the first such report in the medical literature. I continue to review medical papers as an editor for the American Journal of Otolaryngology.
My wife's sister from Phoenix is visiting this week.

Some days you just get lucky. One of my stocks CSUN which was bought yesterday gained 39% today. China Sunergy Co. surged in New York after China said it would pursue alternative energy sources and oil prices rallied.
China, the world's fastest-growing major economy, said it would give ``top priority'' to developing renewable energy, including hydroelectric, nuclear, solar and wind power, the International Herald Tribune reported, citing a government report.

I bought today

Today I bought a basket of penny gold stock juniors as well as several small cap tech stocks and several value stocks. My silver stock buys included SLW, CDE, AEM. My usual stop loss will be just below support on $HUI.

MERRY CHRISTMAS

God bless and wishing you great trading success.

New Gold Stock Buy Signal--Broad Markets will Continue to Rally

Recently gold/xau ratio rose above 5--a leading indicator for the coming 2nd leg of major bull move in gold and silver stocks. I am betting that helecopter Ben will continue to drop dollars out of planes.


Gold/XAU Ratio 4.81

Friday our indicators returned to the buy side. Monday I will buy a basket of gold and silver stocks a few Natural Gas Stocks and several small caps. The IBD remains in rally mode. Obviously my previous short term forecast was wrong!

I forecast broad market selloff with gold stocks declining

"To use the overused pun, the stock market today has bad breadth." MICHAEL KAHN Barron's




Remember MER as leading indicator?--it is telling us to watch out below.

DON'T MAKE NEW BUYS UNTIL MARKETS SHOW MORE CONVICTION

OUR KEY POINT AND FIGURE CHARTS REMAIN BEARISH.

Broad Market and $HUI Continue Lower

Will 374 $HUI give support?

ENT GOLDSTOCK INDICATOR

BEARISH

Broad Markets sell off--Gold Declines

Is this cover story a contrarian indicator?





Be very careful out there--Gold Stocks and Broad Market may take a sharp sell off together if liquidity crisis escalates and the dollar strengthens!!!

Gold stocks sink along with broad market

STOP HIT--$HUI DIPS BELOW 398

Spiking Libor Rates Raise Fears Of Liquidity Crisis Among Banks

FCX Bullish--Leading Indicator




This indicator is flashing a warning sign!!!