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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: the-phoenix who wrote (3584)	11/27/2002 9:22:26 AM
From: re3	Read Replies (2) \| Respond to of 4051

what if they both rally ?

To: the-phoenix who wrote (3584)	11/27/2002 11:33:28 AM
From: yard_man	Read Replies (2) \| Respond to of 4051

I think you are mistaken on the inverse correlation there -- yes, over short periods of time you can see such being very strong and over much longer term, too, but it can also go the other way. For your strategy to work you need to buy a lot of time and make your entry at the time when a "convergence" is ending -- I would caution you to wait because I think a short to medium "convergence" is just starting -- if you look at longer time-frames -- these are clearly less likely -- but you don't want to be on the wrong side with options. My guess is -- we are entering a period of a month or a few months where both will move up together -- your trade will be a huge winner at the end of that. Create that chart over some smaller timeframes and you will see what I mean.