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D square

07/11/04 11:31 PM

#647 RE: D square #646

How to play the gold bull? I think one should have a core position at all times. And I don't think this means one has to hold the same stocks. Although I think its wise to keep at least a small position in those stocks (when trading them) that you think will eventually be the glamour gueens (even regardless of their fundamentals). Which stocks will be the glamour gueens, I don't know but I guess it'll be some of the stocks that have already made great moves to date. I've mentioned Nevsun, and I think Golden Star could be one too. Jim Puplava keeps talking about aquiring juniors with good properties as seniors will buy them up eventually. True, but I think there is a good case for holding larger caps as well because institutional buying will likely move these more than the juniors at times.

I think in a bull, you shouldn't have to trigger a loss on a good quality gold stock. Rather I'd hold it for the long term. In these cases, one obviously doesn't want one stock to be 50% of one's portifolio. IMO, 10% in any one stock should be the upper limit.

I think you have some cash on hand and increase cash to a certain percentage with upmoves. This allows one to take advantage of "dips" and specials that come along. If this turns out to be a long correction, trading keeps the boredom away. Even trading for 10 or 15% gains is healthy while the rest of your portfolio is recovering as mine is.


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SilentOne

07/12/04 4:12 AM

#653 RE: D square #646

Hi D!

I wrote this initially:

"I would not count the rise from the $370 lows as 5 waves up. The 5th wave always brings in divergence (except for extended 5ths), and we have not seen a lower high on the MACD. This is how I tend to count waves where 3rd waves put in MACD highs and 5th waves present divergence. Maybe it is different for leverage markets like gold though.

So this is something else IMO and I expect gold to take out $409 some time soon. Beyond that I would not care to project."

Then having looked at the gold chart further, we could be finishing up and ABC for a "B" wave. The $409 level tells all this week.

cheers,

john