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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (40329)	10/28/2003 2:43:43 PM
From: Snowshoe	Respond to of 74559

Comments on gold from "Rev Shark" at TheStreet.com The Power of Gold 10/28/03 01:16 PM ET I've been receiving a lot of email comments about gold stocks. As I wrote yesterday, these stocks tend to trade differently from the typical Nasdaq stock. My typical approach is to buy strength, but with gold and oil stocks I have found that I have better results when I accumulate on weakness and maintain a longer-term time frame. Gold is trading down a bit today, but I will look to continue to build my positions on weakness. Most of the charts in this sector are forming cup-and-handle patterns, and I think it's just a matter of time before they break out as gold heads for the psychologically important $400 level. Take a look at the Philly Gold and Silver Index (XAU). It hit a high on Sept. 25, pulled back and formed a cup, and then retested the highs the last couple days. It looks like we may now be forming a handle, which means we could drift lower for a few days. The buy point would come on a break of the pivot point of about 98.67. We'll see if this plays out. The setup is clearly starting to form, and we just have to be patient and wait to see if it works. Long various gold stocks.