Steve Quayle News Alerts

June 14, 2003

Here's what's happening from a technical perspective: currency markets versus the dollar breaking out to the upside in standard order of progression; dollar conversely breaking down below support levels and setting up a downside challenge of the key .9200 number; silver is leading gold on the upside as Friday's breakdown of equity indexes has not convinced the establishment investors of a breakdown in general equities.

Traders have repositioned gold futures on the August future break upwards from the Power Down Trend. Gold share traders have repositioned those shares that have done likewise. A chart of Royal Gold (RGLD) is included with this piece for illustration purposes.

Those wishing to trade individual items are directed to the GCRU service from Harry Schultz which is hyperlinked on the left sidebar of General Editorial. Those that wish to graduate to trading from active investors must learn Technical Analysis (TA).

Even with GCRU, you must be able to interpret technical instructions in order to receive the benefit. Even with the best advisor, you must watch markets, use trailing stops and stop loss orders to benefit totally. My job, as I see it, is to bring you up to steam so you can help yourself even if retaining the best of advisors.

Gold

I believe gold will take out Power Down Trend Line #1 on the upside but will run into trouble against the next Power Down Trend Line #2. This view means that we will have to assess the %R, MACD and Momentum as we approach $364.25. I will post you intra-day on www.jsmineset.com as and if we approach that number next week.

Silver

I know you silver bulls refuse to face it but silver, at least now, prefers a sideways equity market due to traders belief that it is a precious/industrial metal. This looks to me like the standard silver trip back into its traditional sell zone as noted on the IBD chart. That will change someday but so far it has been a neat idea to lighten up against that 4.77 to 4.98 tight range. The signs point to getting back into that range one more time almost like clock work.

Euro

Dead on the over-bought line of the HS Schultz-identified bullish FLAG formation. My bet is that it will be out and above by the opening in Europe Monday morning. That is quite important because a close out and above the recent high at 1.19 would be a "Jiler" (named after chartist, William Jiler) measured move half way point. This makes my 1.20 minimum move prediction of five months ago look quite incorrect. It was much too conservative. I stand down always to the ultimate advisor, the market. All I need to do is put you on the road and help you understand the language of the market. Then you two talk.

US Dollar

The dollar has flashed a sell signal by dropping below support levels and in terms of the IBD "Price Momentum Line." I trust you have subscribed to Investor's Business Daily and you traders to GCRU. I have no financial connection to either. My connection is getting you the best possible guidelines at the lowest possible price that speak with clarity and without hedging. Bottom line: the dollar looks awful.

Swiss Franc

If the euro lives on a PR success, I assure you the Swiss Franc lives on a myth of what it used to be. Switzerland is like the spinster that went wild. The Swiss have out done every financial excess known to man, lost their banking secrecy in terms of what it used to be, and in general have joined all outrageous schemes of financing known to man and have even invented a few new ones themselves.

We have a buy signal on the IBD "Price Momentum Lines" and a break out from the Power Down Trend. I added this because I know a few of you are short the Swiss Franc as a hedge. Be Careful!

RGLD

Now it is time for you to tell me what is going on in RGLD. In order to keep this manageable, please fax me in confidence at 860 364 0673 or 860 364 1019. Please understand where individual shares are concerned, I can only answer individual questions concerning TA as publishing is direct competition with advisor friends who make their living doing that. Honor prevents me from competing with my friends of many years.

Video Tape

I anticipate posting the first video this coming week on the web site concerning basic concepts of TA. This will be the first in a series. Your reply to my request telling me what you see on the RGLD chart is my way of determining a baseline of understanding so please follow through.

College of Investing

I am working with two professors that have significant experience in accredited college level distance learning. I intend to ask Dean Harry Schultz, Monty Guild, Marek Kreczmer, David Duval, Mike Martin & Marlene Sinclair to consider joining this effort if there is a real need. Let me know your interest so I can determine if devoting time to this effort is fulfilling something you want and would use.

My intention is to provide a forum of technical and fundamental understanding with "An Investment Point of View." These views will encompass general equities, currencies, collectibles, commodities, understanding the mining process, understanding news releases made by precious metals companies, conduct becoming an investor in developing countries, sustainable social services to build the bottom line and of course emphasis on precious metals themselves.

Our intention will be to teach you how and when to get involved in an investment field. We will in essence lead you to what we see as the right place to be and the right time to be there.

This will be a real school with a real curriculum and real tests in the form of applying the knowledge in the market place. Your final exams will be a recorded review of your knowledge applied directly in the market as bona fide trades on your brokerage statements.

We will seek accreditation. Knowledge without the skill to apply it is a waste of time. Waste of time is waste of life. I do not believe any such education process exists. Nor do I believe any group out there could deliver a better product. We will seek to turn out aggressive investors not only in existing investment mediums but in one they build themselves. Is this interesting to you? Let me know, please.

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