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

To: isopatch who wrote (11047)	4/24/2002 1:22:00 PM
From: bobkansas	Read Replies (3) \| Respond to of 36161

Hi isopatch! I have been a reader of this thread over the past couple of months. Wise posters here. Thanks to all of you for your insights and mistakes as well. Anyway, I would appreciate your advice and that of any others who regularly post here. It certainly looks like gold mining stocks are in the process of breaking out to the upside from a basing mode i.e. being in the early stages of a bull market. I base this on Richard D. Wyckoff's life cycle of the market (and individual stocks)as well as Stan Weinstein's reincarnation imo of Wyckoff's thoughts in his book entitled "Secrets for Profiting in Bull and Bear Markets". I have in the past taken trading positions in NEM in which I sold calls or had naked positions. Both approaches have been profitable for me. I see the need in the next few days or weeks in establishing some long-term core positions in gold-mining stocks. IMO, I can take long positions in the stocks themselves or buy LEAPS. I do not like the large risk with owning short-term calls. I noticed that the PHLX Gold & Silver Sector Index is XAU. The componets stocks are market cap weighted and of course the top four are: NEM, ABX, AU, and PDG. I would prefer to deal with larger cap stocks due to a bit of a reduction in volatility (while I realize that Sector risk comes with the territory). Do any of you deal with buying or selling XAU options? It looks like the longest period for XAU calls is Dec 2002 while NEM, ABX, and PDG have longer period calls i.e. leaps of Jan 2003 and Jan 2004. Any observations or comments are welcome. Best regards, BOB