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Strategies & Market Trends : Yeehaw candidates short-term picks -- Ignore unavailable to you. Want to Upgrade?

To: lostmymoney who wrote (437)	5/25/2004 8:38:45 AM
From: arnold silver	Read Replies (1) \| Respond to of 466

Mikey, Sell everything you own and buy WHT. Put this in the picks.Thanks Big writeup on Gold and WHT in Market Watch. Should get a POP today. aolpf5.marketwatch.com. Arnie Is gold's gut check over? By Peter Brimelow, CBS.MarketWatch.com Last Update: 1:24 AM ET May 25, 2004 NEW YORK (CBS.MW) -- The gold geezers have remained grimly determined through the metal's $50 break - and now they're even starting to grin. Slightly. Free! Sign up here to receive our Personal Finance Daily e-Newsletter! TRADING CENTER Open a Harrisdirect account! INFORMATION FOR DJIA: Create an alert for DJIA More cool charts on DJIA Discuss DJIA NEWS FOR DJIA U.S. stocks close higher but Altria holds back Dow U.S. stocks open sharply higher Bears have the advantage in stand-off with bulls More news for DJIA Charts News HULBERT FINANCIAL DIGEST Order your copy of the HFD Monthly Newsletter Search the HFD database with Hulbert Interactive Get a Profile of any newsletter tracked by HFD. Discover the best performers with HFD Honor Roll. The gold geezers is my name for the six letter editors who were around at the time of the great gold blow-off in 1980 - and the subsequent decline, which they generally navigated quite well. I follow them on the theory that experience counts. When I last wrote about them they were all basically bullish, except Elliott Wave Theorist's Robert Prechter. (See March 22 column.) Gold did spike higher, reaching a multi-year high of $430. But then it broke. Richard Russell of Dow Theory Letters summed up like this on Friday: "It appears that gold has gone through another 'gut check,' which is a powerful reaction calculated to separate all but the most dedicated from their positions." The gold geezers did not flinch. In fact, they're slightly more bullish now than they were then (see table at end of column). Michael Burke of Investors Intelligence has increased his gold mutual fund exposure from 50 percent to 75 percent. (He favors Fidelity Select Precious Metals Switch Fund.) This has happened before. The geezers were notably unshaken when gold broke in early 2003. As it turned out, they were right. (Read archived column.) On the other hand, the geezers remained very calm when gold reached $400 last fall. And, of course, gold did fall back. (See my Oct. 27 column). They're in it for the long haul. Nevertheless, in March some geezers were showing short-term stress -- correctly. For example, both James Dines of the Dines Letter and Harry Schultz of the International Harry Schultz Letter were concerned about bullion, and particularly shares. Not any more. Dines headed his latest gold pronouncement "OVERSOLD AND OVERDUE FOR A RISE." He wrote: "There have been a number of these scary gold and silver drops since the Major bull market began in 2001, and the current Consolidation has been deep enough that it should be ending somewhere around these levels. Such declines are always discouraging, which is why it's difficult to buy near bottoms, so please keep in mind Dinesism #42 (DITER) in which the very function of declines in a major bull market is to keep investors out - until the Top. Also see Dinesisms #28 (DITAKE) and #36 (DIMOTION)." I don't know exactly what these acronyms mean (although I'm pretty sure what the "D" stands for). But you get the point. Harry Shultz also writes that "the gold correction may be ending." Both gold shares and bullion, he argues, "are at Mid-2003 support levels." His currency charts, he says, "imply gold back up to 430, by which time I hope the chart will indicate the next wave target. But I'll take at least half profits at 430, as it will be a triple-top, which usually means a hesitation in price. Then I'll rebuy after a convincing break above 430. If/When." Shultz lists his "personal favorites, based on charts: Wheaton River (CA:WRM: news, chart) (WHT: news, chart), Gammon Lake (CA:GAM: news, chart) (GRS: news, chart), Yamana Resources (CA:YRI: news, chart) (AUY: news, chart). Frankly, there aren't many!" Dow Theory Letters' Russell also echoes this cautious optimism. His technical work, he says, "makes me believe that the gold correction has come to an end, and that the direction of gold and gold shares will now be to higher levels." Monday night, he added: "Gold plodding higher.... Gold shares appear to have bottomed too. But it may take more consolidation, backing-and-filling for gold and the shares to assume a truly bullish profile."