Thursday, October 12, 2006
Our current position on precious metals
Jack Chanwww.simplyprofits.org Oct 12, 2006
Many readers of my work have commented that perhaps the PM sector has bottomed, because...
#1 - many reputable analysts are seeing their indicators at previous major bottoms
#2 - sentiment is very negative, which is a contrarians play.
As always, I have the utmost respect for my colleagues and although I don't always agree with them, my task is not to prove that I'm correct and they are wrong. My only focus as an analyst and active trader is profits, being right or wrong matters little to me. Regarding sentiment, this is an area many are confused. This is how I view sentiment...
Positive sentiment amid positive price action is natural, embrace it.Negative sentiment amid positive price action is a contrarian's play, buy it.Negative sentiment amid negative price action is natural, let it be.Positive sentiment amid negative price action is a contrarian's play, sell it.
Times like this could be very confusing for the gold and silver investors, as the natural force of greed and fear are equally at odds with each other. Feeling greedy because we don't want to miss the next golden rocket to the moon; feeling fearful because most investors will be seeing their September statements down 20 to 30% from previous months. Uncertainty is the biggest obstacle and challenge to an average investor.
My job as a market timer is to remove those uncertainties. I am either long, short, or in cash. If I'm positioned long or short, I manage risk by having planned exit points if my positions are proven incorrect. If I'm in cash, I enjoy the down time by going, you guessed it, fishing. I do not go into the long and winded debates on the economy, and all the fundamental issues surrounding it. I'm simply not smart enough.
Here are our current trading models and positions...
Please visit some of our other Related Sites...
Many readers of my work have commented that perhaps the PM sector has bottomed, because...
#1 - many reputable analysts are seeing their indicators at previous major bottoms
#2 - sentiment is very negative, which is a contrarians play.
As always, I have the utmost respect for my colleagues and although I don't always agree with them, my task is not to prove that I'm correct and they are wrong. My only focus as an analyst and active trader is profits, being right or wrong matters little to me. Regarding sentiment, this is an area many are confused. This is how I view sentiment...
Positive sentiment amid positive price action is natural, embrace it.Negative sentiment amid positive price action is a contrarian's play, buy it.Negative sentiment amid negative price action is natural, let it be.Positive sentiment amid negative price action is a contrarian's play, sell it.
Times like this could be very confusing for the gold and silver investors, as the natural force of greed and fear are equally at odds with each other. Feeling greedy because we don't want to miss the next golden rocket to the moon; feeling fearful because most investors will be seeing their September statements down 20 to 30% from previous months. Uncertainty is the biggest obstacle and challenge to an average investor.
My job as a market timer is to remove those uncertainties. I am either long, short, or in cash. If I'm positioned long or short, I manage risk by having planned exit points if my positions are proven incorrect. If I'm in cash, I enjoy the down time by going, you guessed it, fishing. I do not go into the long and winded debates on the economy, and all the fundamental issues surrounding it. I'm simply not smart enough.
Here are our current trading models and positions...
Please visit some of our other Related Sites...
