Fellow Longs,

I have just gotten back from down south, no it was not Equador hahahahahaha, only Florida were I have been the last 2 weeks. It seemed to me from what I observed while down there that every 5th or 6th home is up for sale. It is always nice when one can confirm visually what one see's in the numbers. The US housing and thus economy is a long way from turnng around.

In fact I have been home all of 4 days in the last 6 weeks, therefore I have just caught up on the many e-mails I have recieved over that period. For those readers who have sent me e-mails during this time, I have not been ignoring you.

It seems so far that ARU today is holding its own, perhaps the professionals are taking the week off or perhaps they have been given cause to stop and rethink their strategy, after the spanking they got last Friday hahahaha.

Once again there is very little volume and a bottom appears to have occured. Simular circomstances to that which occured just before the misleading Soto article was released. Since the MM did not wish this to be the case because of the subsequent rise ARU would have taken going into the end of the year, another misleading article was released. I dismissed it as pure fiction the moment it came out becuse of who wrote it and the timing of the article. I could not have timed the article any better myself if I had wanted to acheived the desired effect of driving ARU down.

The fact that we are in the midst of tax loss selling, ARU had been under pressure due to profit taking and usual manipulations after a nice run up, general market gitters and ARU was holding on the edge of certain technical and psycological barriers made it perfect for one last bear run into the end of the year.

Trading on tax loss selling according to the stats has held true now for the last 22 out of 23 years the stats have been compiled if my memory serves me correctly. This is an extraordinary percentage considering how well known this phenomena is. Usually after such a well defined trend is established in the markets it gets manipulated out of exhistance. The fact that tax loss trading is so successful is because it is once again based on the inescapable fundimentals, we all must pay tax's. Investors do what they can to reduce this burden and put money away to pay for it, professional traders take advantage of this. Also during this period, funds are closing there books, window dressing for year end numbers and volume is usually lower making the markets more easily manipulated.

Gold usually takes a downturn from middle of October give a week or two and this weakness usually extends into the middle of December. Most M&A activity in the mining industry takes place or is well under way by the first 6 months of the year(mining companies plan and set most of their capital expenditures in December for the upcoming year) and thus I did not expect a take over bid coming this late in the year. This knowledge made me fully prepared for a possible bear attack after ARU's nice preformance.

I could have related all this info and more before now but my agenda is to encourage investors to go long as I have. This is in my opinion advice everyone on this board at present will profit from, not just those quick traders. The only reason I relate it now is because the opportunity has passed and it was needed to explain the timing of the latest bear attack.

Regards,

F.F.