Here is an outlook for gold from one of the best market forcasters. |
Love him or hate him here he is!
Don Wolanchuk Is Back for MORE about Oil, Gold, the Dow,
NASDAQ, the American Stock Exchange and Some of His Favorite
• • •
After numerous conversations with Don Wolanchuk, 14-Time "Timer of the Year," we
began wondering whether Don was the greatest market technician in the history of the
financial markets or a Megalomaniac Guru Gone Mad. It's hard to tell, judging from how
Don conducts an interview. But one can hardly fault him for his incredibly accurate
market timing calls. One can be as brash or pompous, offending half the world, but still
look like a genius when they are consistently right in timing the markets.
Since StockHouse.com began interviewing Wolanchuk, earlier this year, he has called
the bottom in, and reversal of, crude oil prices, accurately predicting the March and April
rally in crude oil prices - a jump of more than 80%. Oil stocks have soared as he said they would.
Wolanchuk called for a strong rally in the price of gold: the Philadelphia Gold and Silver Exchange (XAU)
jumped by more than 30% until last Friday - but the XAU is still up by more than 10% from the time we first
interviewed him. He called a rally in the Canadian dollar, which is now up US$0.03 since our first interview.
While the "market experts" we watched on CNBC-TV kept telling us the DJIA had peaked and would
correct, Wolanchuk steadfastly remained bullish - calling for DJIA 16,600 - and the DJIA has risen.
Wolanchuk called the bottom of the Vancouver stock exchange.
We've stayed in touch with Don Wolanchuk and have provided you with another wild interview with the man
Individual Investor Magazine calls "one of the world's greatest market seers ever;" the egomaniac that
Investors Business Daily says has "a sensational track record;" who Joseph Granville calls "one of the
greatest technicians in the world;" and who Esquire magazine says "has the best record for eight years, five
years, three years and two years."
Such praise can not be taken lightly. Wolanchuk is the man Wall Street tries to ignore, but can not disprove
or discredit. StockHouse.com challenges any reader to find any market expert with a long-term track record
surpassing that of Don Wolanchuk.
Don Wolanchuk maintains a market timing service - so extensive - that is has its own menu. For
information on how to access Don's service, dial toll free 1-800-511-0781 in North American and follow the
fax back instructions or visit his website www.wolanchuk.com.
StockHouse: Since the last time we talked, the gold index has gone through the roof. And everybody's
talking about it now.
Wolanchuk: No, not everybody. They're all talking about it, but they don't trust the rally.
StockHouse: Do you trust the rally?
Wolanchuk: Gold's going to the moon. Back when gold was at $500 per ounce, the bag holders couldn't buy
it fast enough. The Fed raised billions and now those same bag holders want out at any cost: Argentina,
Korea, the Swiss, the IMF, and now the UK are all dumping gold. You can just imagine who is doing all the
buying - the FED and myself. Most people have no idea what's happening. That's good because the coming
worldwide economic boom continues to leave most market pundits behind. This coming blastoff in all markets
is just getting started. Vast new markets are opening up to new start up technology. A prime example is in the
Wireless Internet access industry - one of our favorites headed by the ex-CEO of Dell Canada, Bruce Sinclair,
is Waverider Telecommunications [WAVC.OTCBB]. That company, through a reseller of their wireless
modem, has a large contract working in China.
StockHouse: Are the analysts going to think this is a false rally, just as they thought they thought oil was a
Wolanchuk: Depends on the analyst. If the analyst doesn't know anything, he's going to call it a false rally.
StockHouse: Most of the analysts StockHouse.com interviewed, for our March "Investment Central"
magazine story on oil, thought that oil would retrace back to $15, but it didn't. Now they're talking about $20
oil, which is what you forecast about three months ago.
Wolanchuk: It's going higher than that.
StockHouse: You don't see a retracement first?
Wolanchuk: There's nobody on board. Anytime they lock out traders and investors, they never come back to
accommodate them. They lock 'em out.
StockHouse: On gold and on oil, or just oil?
Wolanchuk: Gold hasn't locked anybody out, because nobody's in. Gold will rally, and they'll say, "Oh, this is
a fake-out," and it'll pull back. Then, they'll say, "I told you so." Then, it will take off again, and they'll say, "It
looks like the real thing, so we'll wait for a pullback to get on board." And that doesn't happen either. That's the
sequence of events that locks everybody out."
StockHouse: Do you see a pullback in oil back to its….
StockHouse: Not even a little bit?
StockHouse: It's just going straight through $20?
Wolanchuk: Twenty? It's going a lot higher than $20.
StockHouse: Where do you predict it will go this year?
Wolanchuk: This year? I don't care. I don't do it in terms of timing increments.
StockHouse: Surely you do some short-term timing?
Wolanchuk: Of course I do, but don't call me Shirley. Oil is going above $27.
StockHouse: So you're calling a new price target of $27?
Wolanchuk: It's been there before, you know. Three years ago. Eventually, it'll be
above $42 - maybe in another 8 years. That's all part and parcel of this inflationary
boom that's coming.
StockHouse: Can you justify that technically? Is that part of the wave theory?
Wolanchuk: Oh, yeah. The entire natural resource sector is just starting on a blast to the moon.
StockHouse: Can you quantify "blast to the moon?" Will it double, or be up 40%, in the next six months?
Wolanchuk: When the Nikkei was at 5,000, I said it was going to blast to the moon. What was I supposed to
say, 40,000? The US stock market is going to make what happened in Japan look like child's play before it's
StockHouse: The US stock market's still on a track for 40,000-60,000?
Wolanchuk: It'll go beyond that. Nothing's going to stop it, except a shrinkage in the world's population. My
initial target for the Dow, 16,600, should come here in a matter of weeks or months.
StockHouse: Will Internet stocks go through the roof, or pull back some more?
Wolanchuk: Doesn't matter. That's not the stock market. Remember, it's the cyclicals that are going crazy.
Everybody's made their fortunes on the Internet stocks. That's what happens in a bull market. You make your
fortune in one sector, then jump on to another one. The Internet stocks might correct. That doesn't mean the
market's in trouble.
StockHouse: Which of the cyclicals do you think are most primed for an even larger run?
Wolanchuk: Well, the aluminums, and all the precious metals stocks, steels - all the basic industries. The
demand for basic materials when you go into a worldwide explosion of economic activity is awesome. This is
why you invest in a place like Vancouver, where you have the natural resource sector.
StockHouse: You called the turn of the Vancouver Stock Exchange. You called a rally in the Canadian dollar.
Is the Canadian dollar going higher, too?
Wolanchuk: The Canadian dollar going to go above par.
StockHouse: What do you think of the telecoms and the tech stocks?
Wolanchuk: The telecom index looks great.
StockHouse: What about the convergence of the telecom and the computer industry?
Wolanchuk: All these kinds of stocks - these kinds of companies - are going to be big winners in the coming
worldwide economic explosion.
StockHouse: Why don't you write a book?
Wolanchuk: What for? If I'd told you after the crash of '87 that this was going to happen, you'd have thought I
was nuts. Well, they thought I was nuts. They still think I'm nuts. Investor's Business Daily decided they'd better
start reporting my wild numbers, because I was right the first three times when they refused to print the
StockHouse: So you see rabid inflation over the next few years?
Wolanchuk: No, not over the next year or two. This is a growing thing over the next ten to twenty years. It's
going to be huge. The markets know what's coming.
StockHouse: Over the next month, as we enter the summer period, are we going to see a slow down in the
Dow - a consolidation?
Wolanchuk: This hasn't been a vertical rise. This has been a very sloppy advance. And advances that look
ugly and sloppy are the best kind, because everybody hates them. The only problem I have with the stock
market right now is a little cyclic problem centered on this month's options expiration. You always go through
this exercise every expiration. You put in a bottom the week before expiration, go up, then fall apart the week
after and then you take off again.
StockHouse: Will the NASDAQ continue to soar?
Wolanchuk: The NASDAQ's acting like a million dollars. The Elliot Wave structure is crystal clear. It's a very
positive action. The American Stock Exchange is going to absolutely go insane on the upside. Triple in value,
at least. Right now we're around 780 or 790. I've got projections up around 2,800.
StockHouse: In a matter of 10-20 years?
Wolanchuk: No, in a matter of months. It's already gone up 300 points since October, and it's accelerating.
It's the most bullish chart pattern I've ever seen. It's a natural resource laden index. That and the Vancouver
index are off to the races. And NASDAQ? It's stalling in another consolidation, and I've got these huge
projections around 4,900. We're going to look back and say these numbers are teeny. We're in glorious
times, once in a lifetime. But very few people are going to make a dime on it. They see $3. They grab it and
run. Then six months later, they'll say to themselves, "Geez, I wish I'd held on to that stock. I'd have made
StockHouse: What are your favorite stocks, other than the ones you pitched to us in previous interviews?
Wolanchuk: You take a blue chip like Merck. Here's a stock that's getting ready to
explode. Coca-Cola's another one. Going to $120, then it will split again. And IBM's got
$300 written all over it. Goodyear's not wasting any time. It'll go from $77 to $100. We
originally bought that at $14 in 1990, and it split once already since we bought it. Goodyear
is one of those companies that will benefit from all these cars that are going to be built for all
these super-freeways that are going to lace the planet. Who's tires are they going to use?
And one last little highly speculative, but interesting micro-mini-cap - a company that might if
they continue in the direction they are going - bring voice over the internet into millions of
homes: TEK DigiTel [TEKI.OTCBB] at 45 cents is an option that might never expire.
Obviously for speculative funds only.
StockHouse: Thank you, Mr. Wolanchuk.
Mr. Don Walanchuk may hold positions in one or more of the securites mentioned above.
Disclaimer: The opinions expressed herein do not necessarily represent the views of StockHouse Media Corporation or any
subsidiaries or affiliates thereof.