Precious Metals Market Timing
From the October 22nd Report

Ron Rosen
Oct 27, 2005

"Time is more important than price; when time is up price will reverse." -W.D. Gann

"But 'tween the child and the grown-up, imagination grew
Ways and means for eyes to tease, over, around, and through
Crisscrossing reconnections, tap drummer's little snares
A dot to dash, to energize, reflections the shell wears
Between logic and emotion, between good-night and mourn
The child spun a hiding place, I never knew I'd worn"

This report is my attempt to use graphic logic and not emotion. The hiding place may be found in the first quarter of 2006. Once there we may find the lows for the gold and silver complex, shares included, and crude oil.

We may have to look up to find the U.S. Dollar index making a recovery high.

If all unfolds as Delta Long Term turning points appear to be saying, it will be time to add to or reenter the gold and silver share market. Having it all come together in the first quarter of 2006 may be too much to expect. However, I believe the odds of this happening are very good.

I have included wave counts and potential bottoming areas based on Fibonacci corrections. If between now and the first quarter of 2006 gold closes over its 23 year overhead resistance and the HUI closes over 260, I will consider that the beginning of the next bullish phase. As far as the first quarter of 2006 being the bottom we are looking for, let us remember this:

"The best laid schemes o' mice an' men / Gang aft a-gley." Robert Burns

Comments are posted with the charts.

This chart shows what followed an extreme high reading of the MACD technical indicator. The current probable significance of this reading is shown on the next chart.

At the same time the MACD technical indicator reached an extreme high, the following events occurred:

1. The price of crude oil broke its' parabolic rise.

2. The price reached its projected target of $71.00 ( see next chart)

3. A probable wave Three is complete.

This chart shows how the projected price of $71.00 was obtained. This is a standard method of attempting to determine what the potential price will be after a head and shoulder formation is completed.

"Richard Brock of Richard Brock & Associates recalls a financial management conference he attended in New York. Most of the commodity index funds in attendance had committed 55-65 % of their managed assets to energy, vs. a mere 20-30 % in less exciting agricultural commodities. Brock claims the fund managers told him, "No way can this market go down like tech in 1999-2000."

"In August, it was reported that the latest sentiment poll by Ned Davis research showed 81.3 % bulls in energy futures. (about as extreme as they've been over the past decade)"

These quotes are from Past, Present, Futures by James Flanagan 1-800-545-9331.

Crude oil and Gold have a Long Term Delta LOW due in the first quarter of 2006.

The next two charts are just larger versions of the above two charts.

The HUI has a long Term Delta # 12 LOW due January 12, 2006. There is a reasonable probability that the HUI will make a new low and bottom in the 150 area. If it does, it will violate the major long term major trend line. This would be normal because each phase usually establishes its own major trend line. This break would complete the first phase.

The next page shows that crude oil, gold and the HUI all may bottom in the first quarter of 2006.

Silver bullion has a Delta Long Term LOW # 4 due in February, 2006.

All of the Silver shares have the same turning points. They have a Delta Long Term LOW due in January 2006.

The U.S. Dollar Index is due for A Delta Long Term # 13 high January 2006.

If (there's always an if) gold, the hui, silver, the silver shares, crude oil and the dollar all arrive at their respective Delta long Term turning points as projected, we may be witness to a major turn in those markets the first quarter of 2006.

Stay Well,

Oct 22, 2005
Ron Rosen

email: rrosen5@tampabay.rr.com

Tee charts reproduced courtesy of The Delta Society International.

321gold Inc