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

To: isopatch who wrote (20049)	10/9/2002 5:56:51 PM
From: jimsioi	Read Replies (1) \| Respond to of 36161

Ultimate Oss on the HUI, CEF & c(r)ash No disputing your call for physical and cash has been correct over miners. Notice the the closed end bullion fund (CEF) has been outperforming recently and was up today even with its slug of Silver. Might add to position there. What bothers me about the HUI are two in number. First it has heavy overhead at 120 now only 11 points higher and who knows how much air below current levels if this sell everything mentality continues, and especially if GOLD should break $316 at this juncture. With the dollar showing weakness again I'm not real worried about that but Silver going to $4.25 I'm about equally confident. Immediate risk reward on the HUI doesn't look good. Secondly, the Ultimate Oss is now in the dirt....in fact, over the last couple of years of the bull run reading as we see currently have been followed by the resumption of the trend. Expectation would be for a rally....but if the trend down just slows and the miners aren't reinvigorated by Gold by getting though $325, should that even happen, I'd suspect we're in for a more protracted period of weakness for miners relative to GOLD. Note that turning points in the miners have been in mid November. stockcharts.com[h,a]dbcaynay[de][pc50!c200!c20!c13!f][iut!Uj[cef]!Lh14,3!Ll14!Ld20!Lya7,14,28]&pref=G