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

To: Wade who wrote (41364)	3/3/2013 1:10:47 PM
From: Rarebird	5 Recommendations Respond to of 48092

The whole idea of buying once the market turns is somewhat flawed; that is to say, it sounds good in theory, but rarely works in practice. (Hedge funds tend to buy considerably higher and liquidate within 10%-15% of the washout lows). I say this because there is nothing unusual about the miners rallying 20%-30% (or 50%) even when they are in a bear market. Unless the Miners form a V bottom, a retest of the lows usually ensues after a strong bounce. Thus, one can be buying 20%-30% higher and then have to endure a retest of the lows before the bull move gets underway in earnest. I have seen many buy after the initial bounce, then sell at the bottom after marginal new lows were hit. Others wait for the retest of the lows which sometimes never comes to their satisfaction. So, they miss the move completely or buy 75% higher from the lows. All I know is that the Gold/XAU ratio is headed to all time record territory shortly and all I hear is how much lower the Miners and POG are going.