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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (13877)	10/11/2002 4:39:53 PM
From: ItsAllCyclical	Respond to of 206363

Dabum, wise words. Normally I'd more than subscribe to that theory. However, I have a tendency to "over" trade a core position. EP is not a sure thing, but after all the research I've done (thanks Jim P for the excellent start), I'm fairly confident that EP at $5.5 is almost akin to buying the energy sector when oil was $12 or the gold sector when gold was $250. There is substantial risk since EP is merely 1 company vs a sector. As such I've been looking at others such as AEP, AYE, TXU, TE, MIR and DUK. But I still like EP the best so far based upon risk/reward. XLU is more liquid than UTH and I do have a position there as well (utility index). All in all I probably will take your advice though at least on the EP in my IRA. Another thing is to consider selling covered calls, but I'd like it to get back to 7 to 7.5 before I consider doing that. Since my basis is 5.25 I don't mind another drop to $4.35 on a negative FERC ruling. Although at this point any lifting of uncertainty may be positive. I firmly believe EP will trade to at least $15 within the next 12-18 months. I've made a very large portfolio bet. If it happens I'll be buying my dream house, debt free with plenty left over for future trading. I've keep enough outside of EP that I could stomach a drop to $0, but of course I'd rather not see that. :) I need EP to trade back to 10-12 to accomplish this and then I can sell some covered calls to make up the difference. Wish me luck.

To: chowder who wrote (13877)	10/11/2002 4:50:09 PM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 206363

Dabum, TA wise and option wise I think the stock could see more upside before substantial resistance. Max pain for next week is probably close to 7.5. The latest fall from 8.9 was on lighter volume than the fall from 15. I think it can rebound to 7 to 8 without too much resistance. It won't be a straight line and the gap today between 5.35 and 5.72 may get filled sooner than I think. I do like the fact that it's been trading higher than average volume since it's fall from 15. At this rate we can clear out most of the sellers within 1-2 months. Any FERC ruling is supposed to happen before year's end. I don't want to be out of EP if that ruling is favorable.