Zeev's Turnips Patch-No Politics (ZEEV)

[DlphcOracl]

Bearmove: regarding Fleckenstein and gold.

I do not think the lows in this PM correction are in yet, but we are close. My guess is the the price of gold drops down to $360-365/oz and the HUI index declines another 5-10% or so, with major support for the HUI in the 155-160 range. However, the first day of any subsequent rally (and I do believe there will be one) will see the jr. gold stocks gaining 5-15% on the first day. This is a good time to be nibbling and averaging into positions.

Unfortunately for me, my timing was off and I began adding to positions several weeks ago (4/28) after most of the jr. gold stocks had already declined 30-50% from their December 2003 highs. "seminole" responded at that time that it was too early to buy and that HUI may be heading down to 150. It looks as if he was correct. The ol' "catch a falling knife" has temporarily scarred my hands. (g).