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To: No Mo Mo who wrote (46388)12/11/2000 9:07:25 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 436258
 
depending on your appetite for risk, i'd say 10-20%...a more traditional 'insurance' weighting would be 3-5%.

i hold some core positions for the bull market that will imo eventually emerge, and in addition to that trade a little bit around them...with limited success so far.

note, i am following all sorts of analysis on the metals, and one wave count holds that the current advance in the XAU is a 'b' wave, to be followed by a final 'c' wave to a marginal new low before the bull market can begin. even if it HAS already begun, i would expect the ride to be bumpy initially, with lots of head-fakes designed to throw one off course...check for instance (my favorite example from recent history) how the OSX bottomed in late '98/early '99....it had several false starts before the rally really stuck. and during the rally itself,several notable bumps were hit along the way that were trying experiences for even the most accomplished chart chasers.

similar imo is in store for gold stocks, as disbelief and negativity are still at very high levels.