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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?


To: tyc:> who wrote (38287)4/15/2007 2:23:09 PM
From: SwampDogg  Respond to of 78410
 
Yes we basically mean the same thing
With any investment I am always looking at the best/worst case
scenarios based on a combo of TA and FA. I am never interested in situations where the upside/downside risks are equal rather I am looking for situations where the upside is at least double that of any downside. This is a constant process.
As stocks become extended based on all factors one must ask themselves not if the stock is going higher but the following:

1) What is the ratio of reward/risk going forward?

2) Is there a better ratio some place else?

The reason I do not favour U and BM stocks here is not because I am calling a top but because the ratio of upside/downside is not at all good. The downside risk back to weekly MAs is more than any potential IT upside in the stocks.
At this point the risk/reward in some PM stocks and energy is superb. When this changes I will change. It is a market of stocks not a stock market.