Rick’s Picks

Wednesday, January 25, 2005

For investors who’d rather be smart than lucky

I tried to get across the message yesterday that we needn’t sit on our thumbs while waiting for the precious metals sector to come alive. Like many of you, I hold some mining stocks that I’d rather not think about at the moment, DROOY, Endeavour and Pacific Rim among them. But there are also some solid winners like Cepheid, and oversold bargains like Aquila, that have more than compensated. The bullion stocks will have their day, I’m quite sure, but if that day doesn’t come soon, I’d rather not be in the position of having to hope for better. In the investment world, hope is the last refuge of the loser. Better to act than to hope, and to steer your capital toward the best possible returns rather than remain frozen at the wheel.

I don’t mean to suggest that the picture for bullion is grim. Far from it. But it’s impossible to ponder the chart below without concluding that neither are prospects particularly sunny at the moment. Yesterday’s $5+ drop affirmed that there is insufficient interest to create bullish impulse legs even on the hourly chart. The March contract came within less than a dollar of doing so on Monday, yet it couldn’t muster that final push that would have turned the short-term trend bullish. Now, depending on which of two minor peaks we use as point ‘A’, the futures could fall to either 416.30 or 407.80. We’ll know soon enough, but regardless, there’s no point in remaining paralyzed until we are proven right or wrong.  

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2005, Rick Ackerman. All Rights Reserved. www.rickackerman.com