The Ord Oracle

August 6, 2007

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: Long SPX on 8/2/07 at 1472.20.
Monitoring purposes XAU: Long XAU on 6/1/07 at 142.42.
Longer Term Trend monitoring purposes: Long SPX on 7/12/07 at 1547.70.
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.
NYSE Market:

Above is the chart of the NYSE index with its McClellan Oscillator and Summation index dating back three years. July 28 the McClellan Oscillator reached -344 and is the type of reading found near bottoms. Since 1996 the McClellan Oscillator reached below minus 300 six times (counting current condition) and in all cases the market was near or at a bottom and rallied for at least a couple of weeks and in most cases rallied for several months. Therefore we are expecting the market to stabilize near current levels. On the chart above in the second window from the bottom is the McClellan Summation index. Over the last three years, important lows have been made on the NYSE when the Summation index reached below -500 range and turned up. The Summation index closed Friday at -768.35. The Summation index has not turned up yet and therefore there could be more backing and filling for short term. Once the Summation index turns up from below -500, then that will imply the bottom has been seen. Friday the NYSE hit a lower low as the Oscillator hit a higher low and a short term positive divergence. On the next rally phase, when and if the Oscillator reaches past +200, that will imply the bull market is still enforce. We are long the SPX on 8/2 at 1472.20 for the 30 to 90 day period.

QQQQMarket:
A “Selling Climax Day” appeared on July 26 and August 1. Most “Selling Climax day” lows are tested and if tested on lighter volume then a bullish signal would be triggered by the “Low Volume re-test Method”. The August 1 “Selling Climax day” has so far has not been tested and therefore no bullish signal has been triggered. Next week is option expiration week which normally has a bullish bias. We would expect a bullish signal may get triggered later this week or early Option Expiration week. The shorter time frame of 30 to 90 days appears to be in the stages of making a bottom. We are staying neutral for the Nasdaq 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.

Gold Market:

Above is the Weekly chart of the XAU dating back to mid 2002 with it’s Price Relative to Gold ratio (PRTG). Major bottoms have formed when PRTG reached into the .20 range (indicated with red Arrows on PRTG window). Notice that PRTG reached .2033 today and near the bullish long term buy area. Therefore it appears the market is a lot closer to a major low rather then starting an extended decline. A buy signal was recently triggered on the XAU by a bullish Crossover on PRTG blue downtrend line several weeks ago. That buy signal is still enforce. The Price Relative to Gold ratio measures the value of the XAU compared to Gold. When PRTG is near .20 range then that says that the XAU is cheap in a value since compared to Gold and the investment public bid it down to this cheapness and therefore they are relative uninterested in gold stocks. This is the time to buy gold shares. Historically when PRTG reaches .33 range or higher then the investment public is very interested in gold shares and gold shares are selling at a premium and over valued which is time to look to sell your gold shares. Since the 2000 low in the XAU gold shares have not reached the .33 premium and therefore have not reached the final high. With the ratio reaching .2033 today, it appears gold shares are relative cheap.

The next chart is the Put/Call ratio for the XAU (top window) and XAU daily chart (bottom Window).   When there are 1.5 puts being bought to every one call then the XAU is near an intermediate term low. As of Friday’s close there are about 1.9 puts being bought for very call and a very bullish sign for the short term. Therefore today’s decline may be a last gasp down before another rally phase starts.
The XAU may be building strength to bust through the resistance area near 160 range. We surmise this by the very bullish Put/Call ratio on the XAU and the very cheap PRTG ratio. When the investment public is most bearish is when strong rallies begin. I might add that historically September is the strongest month of the year for gold issues.   We are long the XAU at 142.42.

"Timer Digest" has ranked Tim Ord as the #1 gold timer for one year ending 1/13/06.
Bought TRE at 4.93 on 8/1/07. Bought CDE at 4.08 on 7/10/07. Bought UXG at 5.17 on 6/25/07. 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 KGC on (7/30/04) at 5.26 and we now have an average price at 6.07.
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.   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
1-900-933-6733
$2.25 a min.; 1-4 min.; 18 yrs. or older