Rick Ackerman's 'Golden Pivots'
"Six hours ahead of its time"
Tuesday, February 10, 2004
<I expect strength in the precious metals sector to persist for at least the next 5-7 years, so there's no rush to cash out.>
Pivots Confirm Mining-Stock Bull
TRADING NOTES: According to my runes, a bull market is reliably confirmed whenever correction cycles fail to reach their respective hidden-pivot targets (regardless of the magnitude of the cycle being measured). This is precisely what has just occurred in numerous mining stocks tracked below, as well as in the Comex gold futures, which have rallied sharply after falling to the precise midpoint of a corrective leg. We can start to worry when these pullbacks reach their targets, but for now, their stubborn reluctance to go "all the way" is a healthy sign.
Much as I'd wanted to add to our long positions at recent lows, we should be relieved that the positions we already hold are fast recouping their once fat gains. In fact, with the exception of Wheaton River, which closed 2 cents below our $2.81 acquisition price, every mining-stock we hold is trading higher than where we purchased it. In today's edition I've suggested some moderate profit taking in a couple of stocks, but by and large, we are in for the long haul, more eager to add stock on weakness than to sell on strength. I expect strength in the precious metals sector to persist for at least the next 5-7 years, so there's no rush to cash out.
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