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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Andrew who wrote (1074)	11/26/2003 8:11:55 AM
From: Wade	Read Replies (2) \| Respond to of 48092

No Doubt the trend is till strong. The XAU/POG still show leading role of gold stocks, however, as I can see was short term erosion of POG due to strong SP-500 performance. There is no need to be alarmed at this point, however, the XAU/SP-500 is a critical indicator to gauge money flow to the golds. stockcharts.com[w,a]daclyyay[dc][pb50!b200][vc60][iUb14!La12,26,9]&pref=G Let's think this more positive way, if both POG and SP-500 rally together and SP-500 shows much better return. In this case XAU goes up but XAU/SP-500 ratio goes down. Will it put a cap on the POG and XAU rally? I think it will. Within the small gold investment circle. We always think the tail can wag the dog. The historical records show that gold bugs only been right for probably 4 years out of 30 years. The odds was not so great. We are climbing a historical ladder at this critical point. IF we can make all time high still remain to be seem. I am NOT bearish about POG or XAU at this point, just need to keep my eyes open to see opportunities outside this sector and keep on doing sanity check ups. I feel that reading POG or XAU chart is only watching a two dimensional movie. Once we put SP-500 in the chart, it suddenly becomes 3D!! Wade