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-- Posted Sunday, 25 November 2007 | Digg This Article | Source: GoldSeek.com
11-23-2007 Let me remind those who follow this report that I now record and publish two Mid-Day Video’s: One on Gold and Silver along with one on Stock Indices. These are in addition to the in-depth nightly video I record that covers charts and my market opinion on all the major futures markets. The link to my Mid-Day Videos is below. Be sure to click on the RSS feed to know when a new video is posted. I do my best to record and get these posted by 1:00 P.M. CST. http://www.iepstein.com/videos_start.aspx
Changing Dollar pattern and move to higher Asian Currencies……… Today I received a call from a reporter with Dow Jones. His question had to do with gold and why it was higher this morning given the slightly higher Dollar and slightly lower crude oil price. It would have been easy to mention Subprime issues, the sharp break in stock indices on Wednesday or the Euro staying up near 1.4800. While all are part of the reason for gold holding over $800 an ounce, I chose another answer. Asia! The US Dollar versus Asian Currencies With today’s gold rally up to 826.4, February Gold has begun another Bull Market Leg up. Higher highs and higher lows are now the pattern. You will see in it in the Daily Gold Chart below. However, there is another reason, the rising tide in the Yuan and the Yen. Both have broken out to the upside. Their values are rising sharply against the Dollar. We all know the value of the Dollar has been broken against currencies in Europe. What many are not paying attention to is the sharp drop in value against the major Asian currencies. In the press you hear a lot about the Carry Trade, which involves the Yen. The Yen is in a Bull Trend. One that I think has “legs”. The Yuan, which controlled by the Bank of China, is also in a Bull Trend. I don’t see these trends changing anytime soon, even if the US falls into a recession. It’s now very important to track these two currencies. The reason has to do with what I perceive to be a change concerning the Dollar Index, as the Dollar Index in and of itself does not take into account action in the Yuan. Therefore, moves in the Yan can countervail those in Europe. Today is a case in point. European currencies are higher against the Dollar but both the Yen and Yuan are higher. Gold is up nearly $16 and silver up nearly 30-cents as of the writing of this report. Take note of this “change”. Keep yourself abreast of what Asia is doing, as what goes on there will impact metal prices in a larger way than it use to.
Seasonal Chart I know that I must sound like a broken record each week when it comes to my mentioning how important it is to study the Seasonal Chart below as provided by the Moore Research Center, Inc. However, as a map of market strength and weakness, it has done a really good job in helping my trade recommendations and market timing. 
Today is November 23rd. Historically speaking it’s time for gold to begin moving up….again! Yes, in looking at the above chart here’s another week or so left for this momentum to turn up, but given today’s rally, I want to go on record saying now is the time to be long. Look at the Daily Chart of February Gold below. 
The early high today of 826.4 has taken out the previous high of 826.2. To me this means the chart pattern has, I repeat, “has” changed and is now bullish. Here’s why. Until or unless 780.3 is hit, the “Yellow Lines” which are displayed via my proprietary technical study called “Swinglines” are in a pattern of making higher highs and at this time higher lows. This is the formula for a Bull Trend as a Bull Trend is made up of Higher Highs and Higher Lows. Therefore, I expect the next price break not to take out 780.3. If it doesn’t, the Bull Trend is in place. One that I expect to carry through December. Stochastics which measure: Overbought, Oversold, Getting Stronger and Getting Weaker scenarios have turned up and are now in a Bullish mode. Support is seen at the red bold line, the 18-Day Moving Average of Closes displayed as 812.7. That is the buy zone. The first upside objective is the Bollinger Band, displayed in “white” at 847.9.
If you haven’t had a FREE 4-Week Trial to our Twice Daily Market Recommendations and access to our nightly videos where we review charts nightly, go to http://www.iepstein.com and fill out the New Investor Kit Form. We will send the kit and access to our research to you. As long as you haven’t had access in the past year, you can obtain a Free Subscription to receive access to all of our research, including Nightly Audio/Video Recordings where we cover in detail all the metal markets, when you fill out the New Investor Kit Form on our website.
Conclusion and Recommendation Those who follow this report should already have a core position on of the $830-$850 February Call Spread on at $600, not including commissions or other fees. You can add to these now. My intent is not to risk the total $600 as there are many days left before expiration. I expect to see prices quickly move up to $900 and possibly $1200.
Silver Next, let’s spend a moment or two looking at the Silver Seasonal Chart provided by Moore Research (MRCI). 
The good news here is that in terms of time, November which is traditionally speaking a weak month as far as silver prices are concerned is coming to an end. With that, my expectation is for silver prices begin to rally. Let’s look at a chart of March Silver. 
Unlike gold, silver has had in place a Bull Trend. Yes a Bull Trend. Look at the current Swingline Study as displayed as zigzag lines in yellow. This study is already making higher highs and higher lows. Just two days ago the market broke down and with today’s rally making a “higher high”; the Swingline Low has moved up to 14.530. As long as this pattern continues, I expect much higher prices going into year end. Recommendation Traders who follow this report should have on a core position in the March Silver 15.25-16.00 Call Spread at 24.00. Given the amount of time premium in this spread, unless something dramatic occurs to negatively affect silver, I think you have plenty of “wiggle” room to play with. In any case, should silver fall dramatically in price, your total risk is limited to the price you pay for the spread plus commission and other fees. To discuss these Gold Call Strategies in more detail, either call your IECo Representative or Mark Pesek. Mark can be reached at: 1-800-284-1065 If you wish to e-mail Mark you may do so by writing him at: mailto:MarkP@iepstein.com
http://www.iepstein.com/emailout/07Campaign/LowComissions/video/dollar_ad.html As Exchanges and Vendors raise and/or lower rates, those changes are passed on. The Fees and Commission being quoted are on a per-side basis and are all inclusive! Volatility is here. That’s what traders thrive on. Take advantage of trading conditions by using our super low commissions and great trading software which make it feasible to enter trades where commissions aren’t much of a decision factor, placing the burden where it belongs. On being right the market! It’s really that elementary. To learn more about us or to get started trading through us simply go to our website at http://www.iepstein.com and fill out the New Investor Kit Form. A CD-Rom will be sent to you. At the same time you will instantly begin receiving access to and instructions on how to access our daily market research, trading recommendations, charts and much more. If phoning us is easier for you our phone number is 1 800 284 3010. We handle trading accounts from individuals in a number of foreign countries as well.
Disclaimer: This publication is strictly the opinion of its writer and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is taken from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Futures and Options on Futures trading involve risk. In no event should the content of this market letter be construed as an express or implied promise, guarantee or implication by or from Ira Epstein & Company or Shatkin Arbor, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees or implications are given. Past results are no indication of future performance.
-- Posted Sunday, 25 November 2007 | Digg This Article | Source: GoldSeek.com
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