Tuesday - June 26, 2007
        Silver Is Starting To Tarnish.               

        On 11/29.2005, I wrote for subscribers that "Gold has just broken $500 an ounce....
  Silver had just surpassed $8.00 for the first time in 20 years".  I noted the bullish breakouts
  of NEM, PAAS and SSRI. But nearly all good things and certainly all bull markets come to
  an end eventually. NEM showed heavy insider trading when it was above 50 and we
  recommended it as a short sale. We now know that insiders were dumping the stock
  because they knew that their Central Asian properties were being nationalized and their
  earnings outlook was poor. They waited until the stock was down 10 points to tell their
  shareholders.  It is now 38 and threatening to make new lows for the last year.

                                     Newmont - 2005-2006
 
                      
                                              Newmont 2006-2007


             SSRI has risen 150% since TigerSoft recommended it here in November 2005.  It
     keeps finding more silver in South America. But even it, the strongest of the gold and
     silver stocks, has turned bearish, having shown heavy distribution from the Tiger Accumulation
     Index and completed a bearish price-pattern. 

            As traders, we should also recognize the possibility that SSRI will hold above 32
     and then come charging back above 36.  (False moves to the down-side are part of this
     stock's 'MO'.)   A move quickly back above 36 would be bullish and get us to buy it again.  The
     current decline owes, I think, to the Fed not wishing to let the dollar weaken any further.  As the
     British Pound reached $2 and the EURO made 5 year highs a month ago, they have tried to drive
     up the dollar by threatening to raise interest rates.  In the long run, the dollar looks very weak
     and silver and gold are natural hedges. But for now, SSRI has broken key support and I would
     advise staying clear of it.

                                             Silver Standards - 2006-2007



                                           Silver 2006-2007

                Silver (SL1620 Perpetual Commodities' Contract using Dial Data)
           shows distribution from our Accumulation Index and very aggressive selling from
            the downtrending OBV Line.  The price pattern is a bearish head and shoulders
            pattern, whose neckline has already been violated..

 
                       So, what's going on here with Gold and Silver?  The Federal Deficits
             are as massive and scary as ever.   I think it's that interest rates are going to be
             raised by the Fed in the next few months or even much sooner,  as they try to defend
             the dollar.    More about this linkage in coming reports here.