June 23, 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 ISE Sentiment Index is a unique put/call value that only uses opening long customer transactions to calculate bullish/bearish market direction. Opening long transactions are thought to best represent market sentiment because investors often buy call and put options to express their actual market view of a particular stock. Market maker and firm trades, which are excluded, are not considered representative of true market sentiment due to their specialized nature.  The ISEE gives a good sentiment of what small put and call traders are doing.  When this ratio hits a cluster of .75 and below, important lows have formed in the markets.  We have circled in red when cluster of the ISEE ratio have fallen below .75.  This indicator leads market lows usually by one to three weeks.  The first reading in ISEE below .75 came on 6/10.  Second reading below .75 came on 6/11 and third reading came on Friday.  Therefore we are in the window for a bottom in the market from now until next Friday.  A bullish trigger will occur next when the NYSE Summation index turns up.
Above is the NYSE index with its McClellan Oscillator and Summation index.  Over the last year, market lows in the NYSE formed when McClellan Oscillator traded below -230 the second time within three weeks.  We have labeled three instances in the past year on the chart above.  June 11 the McClellan Oscillator reached below -245 and that reading coincided with a short term low in the market.  Currently the McClellan Oscillator is pulling back a second time and approaching the -230 or lower reading and will indicate a more important low in the NYSE (also SPX and QQQQ) since the McClellan Oscillator will have made a double low below -230.   A bullish trigger will be the next time the Summation index turns up.   For the Summation index to turn up the Oscillator must trade above the 0 line.  FOMC meeting take place this week and volatility in the market around this meeting date may increase and trigger a bullish signal.  The current decline is just about done.  Staying flat the SPX 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: 
Markets usually follow the direction of the Summation index. Since the May low it appears the Summation index has been staggering higher and gaining strength.  When the Summation index is heading higher, it shows that more gold issues are carry the rally and a bullish sign.  The GDX, HUI and XAU markets have not performed that well over the last month and a half the gold issues themselves are gathering strength. The market may waffle around for another week or so, we are still 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
 

 

 

 

email: tim@ord-oracle.com

visit my website at www.ord-oracle.com

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

OEX Market Recommendations
1-900-933-6733
$2.25 a min.; 1-4 min.; 18 yrs. or older

  

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