The Ord Oracle

Tim Ord, Editor 16928 Van Dorn Street Walton, Nebraska 68461
www.ord-oracle.com (402) 486-0362
"Timer Digest" Tim Ord ranked #5 for 6 months ending 10/6/06 and #1 in Gold for one year ending 1/13/06.
For 30 to 90 days horizons: Flat
Monitoring purposes XAU: Long XAU on 6/1/07 at 142.42.
Longer Term Trend monitoring purposes: Flat.
We have "800" phone update that cost $2.00 a min. and billed to a credit card. Call (1-970-224-3981) for sign up. We update Eastern time at 9:45; 3:15 and 4:00. Question? Call me (402) 486-0362.
New Book release called "Master Traders" with Tim Ord on "The Secret Science Of Price and volume. We will autograph the book in the wording you chose if bought through The Ord Oracle. Our price $50 total including shipping.

Above is the NYSE with its McClellan Oscillator and Summation index. When the McClellan Oscillator reaches -230 or below (Last Thursday’s reading came in at -260) the market is heading into an exhaustion bottom. This climatic reading below -230 on the oscillator can show up early in the decline like it did in March of 2005 and May of 2006 but in all cases it predicted that a bottom was not far away. The price low thus far in the decline came in Friday at the 1487 level. Support lies on the SPX near the 1460 range which is the February high and the market may find support there before heading higher again. Today’s rally had weak breadth and volume which implies the rally may end soon. A potential buy signal could form near the 1460 level on the SPX in the days to come.
We are staying neutral for now.

The above chart is the “5 Day ARMS” for the NYSE. The “5 day ARMS” is the close of the ARMS index taken 5 days in a row and added together. High daily ARMS index readings over 1.50 is an oversold condition for the short term and bullish. When the five days of ARMS index reading add up to 7.5 or higher than an intermediate term low is in the making. Friday’s “5 day ARMS” reading came in near the 6.00 level and has not reached the extreme bullish level yet. Therefore this indicator is approaching a bullish level but has not reached the extreme reading to indicate a bottom. We will be watching this indicator as the SPX approaches the 1460 level and the Nasdaq Composite approaches its support level near the 2520 range. We are staying flat the Nasdaq composite for now.

Bought Ivan (Invanhoe Energy) 4/13/06 at 2.55,Energy stock. Could go to Gap area (November 2003) near 5.40. On 4/2, we Bought ASTM at 1.92, Biotech group. Bought GNBT at 1.74 on 7/10/06, sold on 10/17 at 2.15 for 24% gain. biotech. Bought ARIA at 3.89 on 7/27/06, Pharmaceutical, sold 9/29/06 at 4.51 for 16% gain.

Gold Market:

Below is the HUI (Gold Bug Index) with its McClellan Oscillator, 10 day Trin and 10 and 50 day MA (Courtesy of www.sentimentrader.com ). The scary decline last Thursday did not change the buy signal triggered last week other then the 50 day MA, moved back into the bullish buy area again on Friday. The bullish divergence on the McClellan Oscillator at the recent low has been extended and remains positive.

The Next chat below is the “Commitment of Traders” (COT) report for the gold market updated to last Friday. The bottom window is the Gold Small Speculator (Dumb Money). Going back to 2003, when these groups of gold traders are at a very low net long position (identified by the blue horizontal line) the market has been at an intermediate term low. It does not appear last week gyration in price has changed the bullish signal. Putting it in a another way, Shorting the gold market near the area where the 50 day MA is below 20% and when the McClellan Oscillator is producing a bullish divergence along with the Small Speculator at current net long levels resulted in 0 % wins. Long the Xau at 14.42 on 6/1/07.

"Timer Digest" has ranked Tim Ord as the #1 gold timer for one year ending 1/13/06.
Bought NXG at 3.26 on 6/4/07. Bought PLM at 3.73 on 6/1/07. We bought PMU (5/27/05) at .50 and bring our average price to .81.
We doubled our positions in BGO on (7/30/04) at 2.34 and we now have an average price at 2.70. Long NXG average of 2.26. We bought PMU (5/27/05) at .50 and bring our average price to .81. Bought RNO on 9/11/06 at 2.15. Sold 9/12 at 2.18 for 2.3% gain. For examples in how "Ord-Volume" works, visit www.ord-oracle.com.

email: tim@ord-oracle.com

visit my website at www.marketweb.com/ord

Tim Ord, The Ord Oracle
17300 Van Dorn Street
Walton, NE 68461
(402) 486- 0362

OEX Market Recommendations
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