To: nickel61 who wrote (1619 ) 12/18/1999 5:39:00 PM From: Cascade Berry Read Replies (1) | Respond to
I put my entire RRSP into Barrick just last week (25.75 Cdn). Sold on Friday for a 5% gain at 27.05. I'm a short term trader, and I'm just as likely to buy puts on Barrick. I just want TO BE RIGHT. I use MACD, stochastics, RSI, and 5 and 15 day exponential moving average crossovers (with confirmation from other gold stocks on the same indicators) in combination with the charts and pinpoint timing - a purely technical approach. And Barrick was registering a MAX oversold condition on my stochastics (as were FN at 22.5 and PDG at 15.10). So I bought. I would have done just as well in Barrick or Placer or Franco Nevada. The whole idea of this is to make money. It is just a useless yellow metal in reality, but hey, if the gold bugs are in control and believing otherwise that's fine with me - I need someone to take the other side of the trade - just let me get off the train before the party ends. The major point is that gold stocks move as a wall and Barrick is just as good as any other. My whole approach is to pick off the 2-3 point rallies in Barrick with a high degree of regularity. I'll be buying puts on Barrick in a few weeks most likely at the 33 Cdn. level. My model says Barrick is rallying now and headed up in the very short term, but I already captured the long side chunk of this move. So I'm back in 100% cash. I only buy when the stochastics are under 10%. Rallies of 2-3 points on Barrick from this level occur most of the time with 2-3 weeks.
