Trolling for metals stocks
posted Feb 29, 2004 at 12:34AM
There are two theories out there dealing with USD. One this is this a weak countertrend rally and the dollar still has one more major downleg before rallying with any real strength.
The other is that an IT bottom is in and the USD will rally for a few months before resuming its bear market.
Given the price action for now I am leaning towards the first option. The dollar pattern looks corrective to me. I can see 90 being reached but unless something dramatic comes out into the arena...I cannot see the bears giving up the ghost.
At the same time Sol Polha from freebuck.com has some convincing arguments that the dollar bears are going to be handed thier heads by the PTB
I cannot predict the future...but one can start to prepare for contingencies.
On the whole the 200dma for the HUI and POG have been consistently good entry points for the sector. It should at the least provide opportunities for some swing trades. But you want high beta trading vehicles.
So some but not all the stocks I am peeking at.