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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Mazzarella who wrote (167)	5/5/1998 7:12:00 AM
From: Richard Mazzarella	Respond to of 972

A couple of posts on the forecast of XAU: exchange2000.com exchange2000.com

To: Richard Mazzarella who wrote (167)	5/5/1998 7:46:00 AM
From: Dan P	Read Replies (1) \| Respond to of 972

Richard: Your points on the market as a whole and the XAU are well taken. I believe, though, that we are near a short-term buy in the XAU and gold funds again. You may well be correct that the upside is somewhat limited. With respect to the U.S. Market, there are sentiment and other indicators suggesting we are nearing a top. The speculation in a bio stock (tripling or more in one day), and a recent number of % bullish advisers at around 55 % (a bearish figure according to Investor's business daily), suggest that the speculative fever is reaching a high pitch. However, just as in the Nikkei Dow in the late 80's, it was very difficult to predict the top in advance, as the Japanese market continued to become more and more overvalued. I would respectfully submit that one could do better by waiting until we have a classical, unequivocal change in market trend, and while we might miss the first few percent move to the downside, it would likely to be quite a successful trade. Regards Dan