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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (4100)	11/16/2001 5:48:57 PM
From: Davy Crockett	Read Replies (1) \| Respond to of 36161

Hey Slider, It works for me!!! Especially the risk/reward ratio The Risk vs Reward scenario for Gold Stocks is as simple as this. XAU 41 is the "alltime" index low ever seen - which we got last fall. XAU 45ish for all practical purposes is the bottom of historic index range - with the index having penetrated XAU 125-150 5,6 times over the last 15 years - ie: once very 3 years on average. So for those adding on weakness here - we've got 5-6 points downside to the historic low of the index and 75 to 100 points upside to where we've been 5-6 times in the last 15 years. That's a 15 to 20:1 upside to downside risk vs reward ratio in the XAU folks... rarely does it get any better than that... a true no-brainer - chip shot.... as was OSX 45-55 in the fall of 1998. Buying XAU 45-50 is no different than buying OSX stocks in that same range.... both indices historically have traded in that 45 to 150 range. Regards, Peter