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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: marcos who wrote (60591)7/29/2008 7:12:49 AM
From: tyc:>  Read Replies (1) of 78419
 
>>"was that Keynes ...?"

No, it was Benjamin Graham

You talk about buying momo only to have the bottom fall out. When the RS of the stock changes it is time to change too. Not to sit with a falling stock whose relative trend is down.

This is interesting because it discusses a fundamental difference in style. Let me be sure of your point. If two stocks have good fundamentals, you say it is better to buy the cheaper of the two (which is usually the weaker). You'd buy BCM on the following chart. Not me ! I'd trade with the trend and buy KTN (or TRX lol).

stockcharts.com

Another good example is the senior/junior pair. The trend has been for the senior to outperform the junior. But we ignored or denied the trend and lost money accordingly.

My new Mantra; Trade with the trend ! (This does not deny the primary importance of fundamentals in any way)
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