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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (9443)	7/11/2002 5:51:58 PM
From: The Vet	Read Replies (1) \| Respond to of 16631

where Gold and Silver are going. Unfortunately on most days they are linked in a converse fashion. Dave you are right on the inverse link and the need to follow all sectors because of these apparent links. I believe that this inverse linkage is not caused by anything except the huge proportion of hedge funds and short term traders who have gravitated to the gold stocks as being more predictably volatile in direction as trading vehicles. They heavily short all peaks cover all the dips, run the stops and micro-manage the price to slavishly follow the spot gold price on a minute by minute basis. As the trend is generally up and there are not likely to be shocks in the way of accounting scandals or market demand risk, the gold stocks can be manipulated in a straight forward technical way. This will probably continue until the rest of the market adopts a consistent trend, when the interest in using gold stocks for day trading and hedging will wane and they will trade more on fundamentals.

To: Dave Gore who wrote (9443)	7/11/2002 6:09:49 PM
From: The Vet	Read Replies (2) \| Respond to of 16631

Dave, here is an interesting comparison chart.... VIX vs XAU Surprising how well they track... finance.yahoo.com

To: Dave Gore who wrote (9443)	7/11/2002 6:10:51 PM
From: Dave Gore	Respond to of 16631

BTK indeed rallied today and the 5 to 1 call/put ratio on CSCO calls yesterday was followed up today by a 4/1 call-put volume. Volume was heavy today with 16,000+ July 12.50 and 15 calls vs. 4,000+ puts. Massive QQQ options volume today with a 5 to 1 Jul 25 call to put ratio, with nearly 100,000 call volume. MSFT Jul 50 and 55 call volume was 19,000 vs. 9,000 put volume today. Hmmmm.... not unlike the pre-May 8th rally, as I said yesterday. I am beginning to think that watching the volume on QQQ options or the options of favorite stocks like CSCO really can be predictive. We'll see, but over the last 3 months that I have been loosely watching, they appear to show some merit. Next week we can expect the value to get sucked out of options premiums at some point, of course, as expiration looms.