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Politics : Welcome to Slider's Dugout

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From: SliderOnTheBlack8/4/2005 12:48:22 PM
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Risk vs. Reward - where does this reverse HUI Head & Shoulders take us ?

Higher Reward does not come without Higher Risk:

The HUI is unfolding into a textbook classic reverse Head & Shoulders Chart here.

The $64 Question is how high the "right shoulder" can take us....and how those that have actually made some signiciant "marbles" will manage the dynamism of risk:reward as we move higher here:

stockcharts.com[d,a]daclynay[pf][iut][j56407865,y]&listNum=2

Both Gold and the HUI goldstocks... have the cloud of a series of lower highs overhanging the RISK:REWARD Metric.

An Extreme Divergence between the HUI:GOLD Ratio occured into the end of April/early May bottom - that, put a fundamental valuation floor under the move.

On this Chart... at the "V" bottom of the HUI divergence from the Price of Gold - was where the Market offered us a classic "Discrepancy between Price and Risk".

That "discrepancy" and divergence has now disappeared - ie:

finance.yahoo.com

I want to "leverage" my Portfolio at times when the "Price" of that Leverage is the cheapest and the "Risk" is the lowest - ie:

stockcharts.com[d,a]daclynay[pf][iut][J56407865,Y]&listNum=2

Correspondingly... for those that either trade, or want to own/hold the "Metal" - the time to do that is when it's cheap as compared to the stocks...

I tend to break out my personal Pom-Pom's when that window of price to risk discrepancy opens ....and less so, when it closes.

...but, that's just me.

Risk is not static...quite the opposite... it is VERY dynamic.

You LEVER your positions at HIGH REWARD & LOW RISK levels... not vice versa.

That is TRADING.... the flip-side of that, literally... is mindless casino speculation and gambling.

One is for the Professional... the other is for the Amateur.

Let's see if we can get our 3 consecutive closes.

...off to count my marbles ~

Slider`
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