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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Abbeydale who wrote (735)	10/8/1998 8:20:00 AM
From: the Chief	Read Replies (1) \| Respond to of 4467

Hi Abbeydale. Putting logic aside here for a moment!Does that mean that PDG is overbought or ABX is a buy or neither or both? As a daytrader one of the things you have to do is identify the momentum, it is fundamentally irrelevant whether a stock is overbought or not (IMHO). Under normal circumstances you would use this analysis to derive a jump in point for a 'short"! However, the rest of the world is influencing what we are seeing in Gold at the moment. I tend to find it easier just to move with the flow. Gold is up $3.00 this AM, why because japan lost 6% last night, why? Because they no fear the Yen is overvalued and exports will suffer!!! Exactly the opposite reason of what drove the Nikkei up 6% the day before!! So how do you analyze this "moving target", my solution is not too! trying to stay ahead of these market swings is mental gymnastics initself, let alone adding daytrading to it!! In answer to your question of ABX valuation! ABX has a hedge program that virtually guarantees iself $400.00 gold until 2000. In which case the excursions of gold should be irrelevant! Based on this analogy ABX should never have been at $20.10 in the first place!! Is PDG overvalued, based on gold momentum and the fear that everyone has right now of missing the gold boat, probably not!! Can these values of PDG/ABX be associated with POG from a year ago, Nope!! Is it possible that ABX/PDG may reach their 52 week highs with gold $70.00US lower than where it was? Possibly! emember if all your blue chippers are biting the dust and PDG/ABX are "holding" you are theoretically making money!! the Chief