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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (5631)	12/2/2002 1:37:12 PM
From: vds4	Read Replies (1) \| Respond to of 39344

claude... the wedge from above and below is converging on 120. i still do not know which way it will go. martin

To: Claude Cormier who wrote (5631)	12/2/2002 2:25:12 PM
From: TheBusDriver	Respond to of 39344

Well we have reached the apex that is for sure./eom

To: Claude Cormier who wrote (5631)	12/2/2002 8:43:01 PM
From: Little Joe	Read Replies (2) \| Respond to of 39344

Claude: I looked at your HUI chart and compared it to mine. One of the problems with HUI is that is an index which has no volume associated with it and many of my indicators depend on volume. However there is one thing that I am always forced to remind myself and that is that the most important technical indicator is price and the second thing I have to force my self to remember is that the charts don't always tell us anything useful. I think the chart at this time doesn't speak. It appears that the possible breakout of the triangle will fizzle as we appear too close to the apex of the triangle for a breakout to tell us anything meaningful. For what it is worth here is what Edwards and Magee have to say. I do not quote, I paraphrase: 1. There is seldom a clue given on one chart as to which direction the prices are going to go. 2. 75% of formations are continuation patterns and 25% are reversal patterns. They suggest that a good technique may be to look at other charts in the industry and see what kinds of formations they have and make a judgment as to direction based on those patterns. I find most gold charts to be neutral to bearish at the moment, although some are oversold. 3. the further into the apex the formation goes the less likelihood of a signicant breakout occurring. I think we are close to, if not past the point when this triangle formation will produce a significant breakout. So much for Magee. Another thing I noticed is the action regarding the 50 day and 200 day moving average. Price and both averages have converged to an almost identical point. If the 50 day average crosses over the 200 day average, I suspect that the index will turn bearish. My last observation will be that I expect this formation to peter out, however whether it does or not, if a move begins in either direction accompanied by an increase in volume, I intend to follow the market whichever way that move occurs. I have seen this situation many times before and lots of money can be made following the direction of the move, but I repeat to have a high degree of certainty, the move needs to be accompanied by volume. If there is not a good increase in volume in the direction of the move, I would stand aside. As always patience is a virtue that is often rewarded. By the way closed out all of my calls, but one today. I have a few puts and since I think today is a high probability of the high for this move. I am looking for other put situations. As always keep my stops tight in case I am wrong and market runs further up. I will look to short high price stocks that have not matched the market performance. I am looking at WFC now. Little joe