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

To: jeffersonkeith who wrote (16692)	8/13/2003 7:35:28 PM
From: Little Joe	Read Replies (2) \| Respond to of 39344

I am always thinking about when to get out of a position, but I don't think we will be seeing anything but a short term correction which we may have seen yesterday. The reason I feel this way is that when you break down the charts of the various golds, there is a pattern common to a lot of them and that pattern is that they are breaking out of a base and stocks that break our of bases don't normally top out, although a ST correction usually does occur. I also agree that the momentum indicators are way over bought, but while the technique of selling momentum extremes and, for that matter bullish consensus extremes, works well in consolidations, the technique doesn't usually work in strong bull trends and strong bear trends. Lastly there is that what I can't explain, which is my seat of the pants or gut feeling. The the charts look to me something fundamental has changed. We may not know what it is yet (although I suspect that the big boys are betting on inflation and/or currency crisis) but we will know in the future. These markets are exhibiting the kind of action that I have seen before in strong markets. Shrugging off bad news, shallow corrections, up moves late in the day are all indicative of a bull market. There is, however, one thing I am watching, which is that some of the dogs are showing strength. Too much of this will worry me seriously and if the trend continues, I will use very close stops. Any way for what they are worth, those are my comments. Little joe