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

To: whitepine who wrote (23922)	6/18/2003 12:13:38 PM
From: chowder	Read Replies (1) \| Respond to of 206181

Whitepine, >>> RBC cuts price target of HGT to $11.00 in 12 months. <<< Another reason to take profits when things look like they are going to last forever. A lot of people had very good reasons for the energy sector to continue showing strength. And, those reasons are still in play. However, the market is about supply and demand. When CNBC continuously promotes energy and when we see more and more people showing up with their views on energy, it signals the end because everybody that wants to buy, has. There comes a point when there aren't many more buyers and that's where smart money starts to lock in profits. In my opinion, that's why we saw the huge selling volume the past week in the OSX. The institutions were selling into their own upgrades. Nearly everyone that wanted to buy, had. In order to create a market where smart money can remain profitable, they must take prices lower. I don't think there's been a dramatic change in the fundamentals of the energy sector, I think it was the market forces that changed. Supply was greater than demand as more attention was being paid to energy. Now we see a scenario where people who wish to buy energy, want to see lower prices, human nature being what it is. Yes sir, love taking them profits as prices are rising. It sure has a different impact on the psyche than selling at the same price but, selling as the price is falling. Yes sir, a different feeling altogether. One has the effect of performing from a position of strength, the other from a position of weakness. Everything I've read about professional traders says they always leave something on the table for those who show up late. Otherwise, they wouldn't have anyone to buy from when those who held too long, or showed up too late, start their panic selling programs. I know you know this, just sharing some thoughts with the group. Profits don't count unless you take them. Right, Frank? <g> dabum