Ron Rosen Precious Metals Timing Letter
We are in pretty good shape

Ron Rosen
Nov 17, 2006

The HUI, gold, and silver will experience one more decline lasting approximately 3 to 6 weeks before the correction that started in May 2006 will be over. The types of corrections that are taking place do not require new lows in order to be complete. We are fast approaching the start of the most dynamic part of this precious metals bull market since it started 6 years ago. When this decline appears to be ending I will be issuing a buy signal for the balance of funds in the trading account. The investment account is 100% committed and the trading account is 50% committed. Approximately 6 months have elapsed since we last saw new highs in the precious metals complex. The previous rise in the HUI went from 165 to 401. That was a 243% rise in approximately 12 months. The HUI will be starting a third of a third wave and it should be substantially greater than the previous rise.

The trading account has appreciated by 51% in the past eleven months. The combined investment and trading accounts have grown by 38% during the past 11 months. Since the gain for many multibillion dollar hedge funds is averaging a bit over 4% for this year, I would say we are in pretty good shape. I can't imagine paying an advisory fee, 20 % of the profits, and making only 4% a year. We can do better with a CD at a local bank.

The charts posted today show the approximate amount of time left before the corrective process is over.

Delta medium #6 low is due December 6 and it has a range for arrival between November 22 and December 20.

HUI DAILY

Stochastics are in overbought territory and are about to turn down. The [e] leg should bottom substantially higher than the low of wave [c]. I believe that Delta long term #1 low is in and the HUI is headed for Delta long term #2 high due in March 2007. The long term pressure is on the upside and should mitigate the extent of any decline in this final leg down.

HUI WEEKLY

Gold will be correcting with the HUI and may bottom around the same time.

GOLD DAILY

Gold will be making a bottom at Delta medium term #7 low, due December 6.

GOLD WEEKLY

The timing for a bottom in silver may vary slightly from gold. There is a long term Delta #5 low due on January 17. However, it has a 100% range for arrival between November 15 and March 21, 2007. In a very strong bull market the lows tend to arrive early. Silver appears to be in a very strong bull market; therefore we should expect Delta long term #5 low to arrive early.

SILVER DAILY

The next Delta long term high for silver is #1, due June 20, 2007. The biggest moves tend to occur on either side of #1.

SILVER WEEKLY

"When a stock [or commodity] advances into new territory or to prices which it has not reached for months or years, it shows that the force or driving power is working in that direction. It is the same principle as any other force which has been restrained and breaks out. Water may be held back by a dam, but if it breaks through the dam, you would know that it would continue downward until it reached another dam, or some obstruction or resistance which would stop it. Therefore, it is very important to watch old levels of stocks. The longer the time that elapses between the breaking into new territory, the greater the move you can expect, because the accumulative energy over a long period naturally will produce a larger movement than if it only accumulated a short period of time." -W.D.Gann

Silver exceeded the resistance at $14.93 when it reached the high of $15.20 earlier this year. The next level of strong resistance will be $24.18, a high which occurred in September of 1980.

SILVER QUARTERLY

The dollar will be moving up to Delta long term #1 high due between November 29 and January 2007 while the precious metals complex is finishing its correction. The stochastics are about to turn up.

DOLLAR INDEX

SUMMARY

"Showtime" will begin before this year is over. It promises to be a show to remember.

LET THE SHOW BEGIN.

Nov 13, 2006
Ron Rosen

email: rrosen5@tampabay.rr.com

Tee charts reproduced courtesy of The Delta Society International.

321gold