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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Eashoa' M'sheekha who wrote (3924)	12/7/1997 3:41:00 PM
From: Cascade Berry	Read Replies (2) \| Respond to of 116836

Yes it is interesting that the crowd is now very vocally bearish at over 100 per oz less than a year ago, when not many bears were in evidence... I recommend charting of TSE Gold Index to TSE Composite ratio with 5 and 20 day moving average crossover for trading options on gold stocks, and use extremes of this ratio to suggest possible turning points. This type of thing seems to work well on the Cdn. market generally - with this I simply make a five and 20 day average of the Dow minus the TSE Composite. When the gap between the two indices changes direction it is a good time to either buy or sell the TXO options as the relative strength of the two markets seems to trend well. This is because of the high resource component on the TSE which acts counter to the Dow in general, and when it kicks in at the tail end of big Dow rallys, Toronto will play catch up on the upside for quite a few days. On the downside, when the Dow is starting to drop, TSE will usually go slightly up to flat as resource stocks continue to rally against the Dow, before the TSE then plays big catchup on the downside...This seems to happen a lot...wait for a big move in the Dow and then catch the train a week later in Toronto - for example TSE now seems to be on a catchup move up right now, and I would be long the TXO options currently. Cheers.