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

To: isopatch who wrote (24019)	12/20/2002 10:43:03 PM
From: crdesign	Read Replies (1) \| Respond to of 36161

<He's ugly, but he sure can cook!!!> Yer a great man! According to my wife: I bake.... Too long between batches. <gg> Did I just say what I think I said? Kudos to you Iso, Tim

To: isopatch who wrote (24019)	12/21/2002 12:30:55 AM
From: nspolar	Read Replies (1) \| Respond to of 36161

iso, not too beat a dead horse, but ... I think if I could go back and read all the SDII posts I would find one a long time ago on the subject of 'strength'. If I recall one iso stated this was one of the more difficult concepts to grasp (or remember) by even seasoned investors. Not sure but the basic reason to forget this may be greed - it is so easy to look at those beaten down issues and think they can explode, and multiply many times. Problem with this approach is that in many cases there are reasons for them to be beaten down, some to the point they become just specers (PGO for example). Late last summer I recall Zeev harping on the same thing, to a down in the chin too early tech investor (not me but it could have been) who was all lathered up and had no conviction. Zeev recommended to this fellow he go through, and without a long explanation, cull all his weak holdings and if necessary all the them. Then he should follow that up by doubling up on the strong ones. It would have worked for this fellow. Another way for more active traders in PM's would be to load up on the strong ones, initially, and concentrate for some timely rotations, without pushing it too far. I've made most of my PM bets, with still a little powder to burn, in PM's or gassers. However, if the PM horse continues to ride I don't think it too late to reallocate somewhat according to these principles, in case one hasn't. Even though I've tried to position according to these principals, I may even take my own advice, over the weekend. Beginning to think I'm not gassy enough, just long on wind. Last weeks draw made an impression. Secondarily I'm of the strong opinion that some of the more liquid small cap PM issues should outperform, on average, for quite a while. This of course assumes we go much higher, and we only will if funds buy these things. Funds are most likely to buy, percentage wise, the better known and more liquid issues.