Four Pillars Finance Newsletter

Issue #104 (13 December 2010)Hello everybody.This month we are picking up our old newsletter format for FPF again.A lot of our readers have been sending in emails asking what happened to our newsletter, so even though we were continuingour irregular comments on the blog site (http://fourpillarsfinance.wordpress.com),not everbody found the way to it. We will continue to post our updates on the blog as well, but I think for an irregular newsletter like this one, a newsletterformat that comes straight into your mail box is more convenient for many.So now you will have the best of both worlds: you can receive and read our newsletter like you always used to do, but youcan also come to the blog site whenever you want to post a comment or a question.We will pick up where we left with our most recent comments on the blog.Here is the FPF prediction chart for the Nasdaq in 2010.More predictions charts for other markets, stocks, indices and commodities are available to the registered users of our FPFsoftware program:

(Predictive chart made with FPF 1.1 software, available athttp://www.fourpillars.net/finance/fpf.php

)

Nasdaq

Current level: 2637

As we mentioned in our September blog post, the Nasdaq has climbed back to the recent April highs, and is currently tradingclose to 3 year highs.The Chinese Cycles are positive for December and also next January, but then we will have Metal Months coming up, so weare probably putting in a top here.I would use this as an opportunity to sell and move to the sidelines until we see a better buying opportunity (probably by mid2011)And here is our updated prediction chart for Nasdaq:

Gold

Current level for XAU index: 223

Gold stocks have finally taken out their 2008 highs, but it wasn't easy.It think the move in gold stocks is pretty disappointing, given that gold has gone up to $1400, yet the gold stocks are barelykeeping up with the rest of the stock market.Since 1

September the XAU is up 23%, while the Nasdaq Composite is up 25% .We are now entering the Earth months, typically a bottom period for gold stocks, so I am looking for a decline in thismarket.Intitial target is around 190, where some strong support should appear. Here is the updated chart: