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Microcap & Penny Stocks : Rat dog micro-cap picks--now moderated -- Ignore unavailable to you. Want to Upgrade?

To: MSI who wrote (63)	2/18/2004 9:19:24 PM
From: ~digs	Read Replies (4) \| Respond to of 1338

my thinking is to remain long but perpetually cautious until the current uptrend line for the Dow is broken. By my observation, the dow has been by far the most resilient index since April of 2000. There will not be much to turn to once this index becomes broken. my conditionals are as follows.. if we get a broken uptrend line on the daily chart, then take notice and watch for further development. next is to see if the subsequent recovery is able to cross back over the trendline, or if instead that same line holds as resistance . failure at this juncture means get rid of lofty techstocks, for sure. finally, if continued weakness results in a lower low.. then we have both confirmation and the makings of a new downtrend. this is the 1-2-3 reversal method that Dr. Elder refers to. if and when it occurs.. my opinion is that you shouldn't own anything whose long term trend runs concurrent w/ the major three indices. instead, capital should perhaps be split up between Profunds ULTRAshort .. QQQ/SMH puts etc.. and as much metal as possible... physical or otherwise the only other thing i'd consider owning are niche microcap story stocks.. w/ an emphasis on security related issues I plan to do it all or nothing w/ no hedging, and then stay defensive until we've seen a 1-2-3 reversal to the upside... like the one that the ^XAU completed in May of 2001