June 16, 2008

And The All New Market Analysis

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 12/18/07 at 162.05.
Long Term Trend monitor purposes: Flat
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The "Tick Index" is the difference between the number of issues (or stocks) trading with the last trade higher (an uptick) form the previous price and issues (or stocks) trading with the last trade lower (a downtick) for the previous priceClosing tick readings below -800 indicate at least a short term bottom is near by.  Notice back at the March 17 low a -862 down tick reading was recorded and a bullish sign.  March 18 the SPY rallied strongly and closed with +1231 up tick readings.  Up tick closing of +1100 suggests a short term top is at hand.  March 19 SPY decline and closed with -960 down tick readings and suggested a bottom and the market rallied the next day. June 11 closing tick reading came in at -849 and a bullish short term sign.  Mondays rally produced a closing uptick reading of +836.  Uptick readings exceeding +1100 is needed to suggest a top is near and therefore Fridays reading was somewhat bearish but not bearish enough to signal a top.   Also notice on the chat that SPY tesedt the gap level of 4/16 on higher volume and suggests at some point the gap will be tested again later and keeps the larger trend neutral for now.  This week is option expiration week which normally has a bullish bias.  Fridays and todays positive Advance/Decline line has turned up the SPX McClellan Summation index and implies the rally may continue (see chart below).  There is a gap near 140 level on the SPY and gaps act like a magnet for the market pulling the market to it.  SPY may go up and test the gap level.  If the 140 gap is tested on lighter volume then that would be a bearish short term sign and signal that a possible re- test of the 4/16 gap near 136.   A lot of the times the July 4 holiday signal larger trend changes.  If market rallies this week to 140 and declines into July 4 holiday down to 136 gap level and test this level on lower volume then potential longer term buy signal could get triggered their.  Staying flat for now.
 
Sold 5/27/08 IVAN at 2.70=6% gain. Bought Ivan (Invanhoe Energy) 4/13/06 at 2.55,Energy stock.  On 4/2, we Bought ASTM at 1.92, Biotech group.  Long POWR at 13.70 on 12/14/07.
 
Gold Market: 
 
The following was written for last Wednesday report and its worth keeping in mind.  In the very near future we expect the following.  Above chart shows the longer term view of the monthly XAU with its Price Relative to Gold ratio dating back to 1984.  Late 2007 the XAU Jumped the Creek (rallied above previous major highs of 160 on XAU) with a Sign of Strength (Wide price Spread and big Volume).   This valid break above the previous high implies now that the previous highs should not become support, which is the 160 range and the worst case scenario for a decline.   Since this 160 trend line dates back to 1987 it should act very strong support.  Major bullish signals are generated when the monthly Price Relative to Gold ratio drops below .20.  We have identified those instances above with red arrows.  Notice that a bullish signal was triggered by this method recently.  Even though the market may waffle around for another week or so, we are expecting a strong advance to begin in July.  We remain bullish on the XAU on the bigger time frames and we are long the XAU from 12/18/07 at 162.05. 
Sold PMU on 2/29/08 at 1.20, bought at .81 for gain of 48%.  Long KRY at 1.82 on 2/5/08. We are long PLM at 2.77 on 1/22/08. Bought CDE at 4.08 on 7/10/07. Bought NXG at 3.26 on 6/4/07.  We doubled our positions in KGC on (7/30/04) at 5.26 and we now have an average price at 6.07.  Long NXG average of 2.26.   For examples in how "Ord-Volume" works, visit www.ord-oracle.com
 
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email: tim@ord-oracle.com

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

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