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To: ms.smartest.person who wrote (1603)	8/18/2002 7:41:05 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 5140

Gold Stocks -- What to Do Next? August 15, 2002 We have received many questions about gold stocks in recent weeks. How can we trade them? When should we buy and sell? These are very good indeed. However, the problem is the gold market is just about the most volatile market out there. We have come to the conclusion that other than at panics like we saw in late July it is almost impossible to short term trade. Hence, you have to possess a strategy. We believe that gold is in a major bull market. Hence, we believe you should possess core positions in gold stocks and ride out some of the vicious declines as in 1-2 year‚s time you will end up ahead. We also believe that traders should be picking up our micro-caps as if gold were to climb to over 350 dollars an ounce these should really start to take off. However, there is always place for large and medium sized companies, which this email will deal out. Before we begin please click here for our analysis of the gold market: stockcharts.com[m,a]dhclyyay[db][pb50!b200][vc60][iub14!la12,26,9][J0,Y]&listNum=1 . We should note that this graph does not take into hand today‚s action in gold that saw the metal up nearly 3 dollars to 314.6. Gold is having a lot of trouble in the 315-318 range. Anyhow our point is this: The downtrend line for gold is in the 320-325 range and support is at 300. If someone came to us and had 10,000 dollars they wanted to put in large/medium sized gold companies we would give them the following advice. Put 5,000 dollars in now. Gold should be higher in 1-2 year‚s time so there is no point in penny pinching. Wait on the other half. Either purchase the other half on a dip to under 300 or on a breakout above 322.50. And PLEASE HAVE PATIENCE. That is our advice. Below is the graph of the HUI. stockcharts.com[m,a]dhclyyay[dc][pb50!b200][vc60][iub14!la12,26,9][j5480268,y]&listNum=1 The HUI is right at 120, the point where it broke down in July. A close above this point and then a close above the downtrend line would be positive. We should note that we still don‚t think the big move in gold will come until late this year/early next, but now is the time to begin picking your spots. And here is the big one. We have received many questions on how to get a broker who trades the Vancouver juniors. The best broker we know of is Richard Radez; he is located in Indianapolis, Indiana and his phone number is 1-800-285-1700 tell him Dave Skarica sent you. We hope that helps. And remember these are longer-term plays so you should be willing to pay a few bucks in extra commission. We recommend the Vancouver stocks and not the OTCBB American traders because the Vancouver stocks are much more liquid. Both the Dow and the NASDAQ are at key resistance levels of 1,350 and 8,800. Breaks above this and they could go higher. They may have some more choppy trading before doing so. Our calls are doing fine, but HLIT is lagging, we are still holding, but will switch if it continues to do so. Note the graph of the S and P 500 below. We want too see the short term uptrend hold if this rally is to continue for another month or so or longer. S and P 500 Graph: stockcharts.com[m,a]dhclyyay[db][pb50!b200][vc60][iub14!la12,26,9][J5351722,Y]&listNum=1