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

To: jrhana who wrote (1086)	11/26/2003 7:43:01 PM
From: Wade	Read Replies (1) \| Respond to of 48092

<Two separate games each with its own rulebook. I am sticking to the game where I know the rules.> Are you saying that you only know the trading rules in PM, not in the rest of markets? You don't need to abandon any old indicators which you are using. What I am trying to tell is to look at POG and XAU in different perspective. I call this is a sanity check up which tells us the relative positions of our plays vs. the rest of the stock market. Many people forgot about the sizes of the golds comparing to the rest of stock market. When the game of gold plays is over. They don't know what to do with their holdings. They became gold bugs<VBG>. You can ask the gold bugs how many junk juniors in their shoe boxes<VBG>. What I am looking at are the POG/SP-500 and XAU/SP-500 charts. The ratios are relative performance of PM vs. general market, so that you will know if PM plays are nearly over so that you will have plenty time to covert to regular stocks. Hope you know those rules as well<VBG>. If we are in true PM bull market, of course, you don't really need to look at these charts. However, if both PM and the stock markets behave abnormally, these charts should give us plenty information to prepare our strategies. Looks like todays's PM rally wiped out my worry for this moment. The POG/SP-500 ratio moved upward to 0.375 from 0.371. This ratio tells us which direction of money is flowing. We need to clear 0.394 in order to reach new high, then we should see significant/explosive inflow of cash into this sector after break out from 0.394. This war of PM and dollar is still in its very early stage. We should have more fun in the months to come. I watched the POG ticker blinks as POG hit 400 today. The back and forth battles made me breathless.<VBG> Good investing. Wade