A Comment -- General Comments From an Expert (A Commentary)

Dow Industrials vs. Transportation - For the economy consider transports as the canary in the mine. If transports are busy, the economy is busy. Using last February as the pivot point, The Dow Industrials rallied solidly above it and are still above it.

TSX Financials vs. Gold Index – The Financials 10-month rate of change has been above zero for about 5 years. The Gold has been below zero. The chart shows a Bear in 06 and into 07. He feels the Financials are getting tired as the rate of change is getti

Junior Gold vs. Senior Gold - In the first stages of a Bull, Juniors are the place to be. As the Bull matures the Seniors get moving. At this stage of the Bull he would not go for the Juniors.

S&P 500 has done a perfect reverse head and shoulders, but it is not very big. To be a valid head and shoulders, it will have to take out a new high. If it only rallies to about half way then it will retest its low, which is when the nail biting time com

Natural Gas - Thinks it is trying to bottom. He usually uses a spread between crude and natural gas. Gas is trying to put in a higher low.

Molybdenum: - In the short term, he expects a lot of volatility because that is what we will get in all of these markets. In the very long term, expect demand increases. This is a very good metal to use in alloying steels. It imparts numerous, very benef

Felt that the market reached a bottom on August 22.

Banks: - National Bank (NA-T) quantitative model is 40% followed by Bank of Montreal BMO-T) at 17%, Royal Bank (RY-T) at 15%, Bank of Nova Scotia (BNS-T) at 12%, Canadian Imperial (CM-T) at 2% and Toronto Dominion (TD-T) at 1%. Thinks the banks will boun

Gold: - Seasonal wise, this would be the time to get into golds. If the US were to cut rates, it would re-ignite another fall in their dollar and that is when you would see the biggest lift in gold. He thinks rates are stable in this environment.

Banks: - Sees 15% downside on banks. The most profitable and well run banks in the world. Expect their 4th quarter will be pretty much break even.

Gold: - One of the few commodities that will show upside over the next year.

Gas: - Cautiously bullish on natural gas after October. Predicting spot prices of $7 this year and $8 next year.

Gold - Interesting that there wasn’t a flight to gold during the downturn last month. Gold actually went down rather than up. Is gold really fulfilling the role that Gold bugs always thought it did, a refuge from paper assets.

Iceland bonds: - I.A.D.B. 13% yield (June 28, 2008). AAA rated. Backed by the World Bank so there are no credit issues. Smelters have located there because of the cheap thermal power and have built a large deficit account to build the smelters. Biggest risk is currency.