The Financial Facts As Of 9-15-2006:
Homebuilding stocks finished the week 10% higher.
Dow Jones Transportation Stocks finished the week 5% higher.
US Government Long Term Bonds as measured by the ETF (TLT) finished the week unchanged.
Telecom Service Stocks finished the week 4% higher.
The S&P 500 finished the week 2 percent higher.
Basic Materials stocks finished the week 1% lower.
The Nasdaq-100 finished the week 4% higher.
Oil service stocks finished the week 2% lower
The XAU Index of gold mining stocks finished the week 6% lower.
The HUI Index of gold mining stocks finished the week 10% lower.
Energy stocks finished the week 2% lower.
Silver as measured by the ETF (SLV) finished the week 8% lower.
Gold as measured by the ETF (GLD) finished the week 2% lower.
Commentary by Jan Allen:
This week was marked by a Stock Market Peak as seen by
The S&P 100 manifesting 'a shooting star' as the (^OEX) finished at 609.01.
Here is a chart of the S&P 100s Shooting Star Formation.
The second part of September 2006 will see
A downturn in the financials stocks -- i.e the S&P and the Nasdaq-100.
The price of gold falling quickly to $540.
A continuance of the Commodities Bust which will manifest as an Elliot Wave 3 Down of gold mining stocks, energy stocks, oil service industry stocks and gold.
October, November or December 2006 will see
The installation of the North American Union by the terms of the Security and Prosperity Partnership Of North America or other Financial Panic whereby gold will rise significantly in price.
Jan Allen's Recommendations:
I recommend one liquidate all financial assets immediately which includes stocks, bonds, mutual funds, etfs and stand ready to buy gold after it falls to $550 to $540 and before the installation of the North American Union.
Some have pointed out to me that commodities having great price swings which subject the investor to significant risk. I reply as follows:
The weekly CRB Index Chart shows an early May 2006 Fractal Break Down. It was a historic event: it was the pivot point where commodity prices changed from an Elliott Wave 5 Up to an Elliott Wave 5 Down.
In response, on May 9 2006, the stock markets as measured by the S&P 100 (^OEX) at 603, turned down. Then on 7-17-2006, the S&P 100 started a recovery at 566, and now as of 9-15-2006 has reached 609.
In other words, stocks can and do experience significant price swings: further example of which can be seen in the 9-28-2006 Fractal Break Down of the XAU Stock Mining Index.
In summary, the price swing that is coming to the stock markets will be breathtakingly down, while the price swing that is coming to gold will be awesomely up.
If one has less than $2,000, one can invest in the ETF (GLD) but this carries risk as it is not a real asset.
If one has more than $2,000, one can buy, store and sell gold at Bullionvault.com. The advantage of this service is that one personally owns the commodity where it is guarded by Brinks--a global leader in security.
This article, with its many charts and references can be found on line at: http://tinyurl.com/sy5kh
Suggested Reading
Investment Commentary by Volkmar Hable dated September 16, 2006
http://tinyurl.com/rhhvb
Elliot Wave Gold Update VIII by Alf Field dated September 11, 2006
http://tinyurl.com/rfur4
[Proofreader's note: this article was edited for spelling and typos on September 18, 2006]
Note: http://tinyurl.com/ok3f9
http://tinyurl.com/sy5kh
http://tinyurl.com/rhhvb
http://tinyurl.com/rfur4
