Gold Stock
Alert
Sheeple vs Slizzards
Bob Moriarty
Email
September 20, 2002
The overall stock market looks
as if it is going to test the July lows. Gold bugs often forget
that during a waterfall type decline the sheeple tend to throw
the baby out with the bath water. That's what happened at the
end of July, it happened in 1987, and we believe there is an
excellent chance it will occur shortly.
The signs of a major bottom
in the stock market are beginning to appear. That represents
both great risk and great opportunity. The chance of a major
bottom between now and the third week of October is excellent.
We wouldn't be major sellers
of gold stocks. The risk of missing a move higher is greater
than the risk of making a major move down. But downside risk
exists. What I would look for is a possible plunge in the gold
stocks followed by an immediate move back to where we started.
I'll use as an example a stock
I bought on the day of the bottom in May of 1970. It closed on
one day at $15 - opened the next day at $12, plunged to $9 and
closed at $13 - all in one trading day. Therefore, it would be
a prudent and potentially lucrative move to put in buy orders
on your favorite gold shares at 30-40% below current levels and
hope for a plunge.
If you wait until the day of
the move, you will miss it. The market maker slizzards would
have scooped up all the cheap shares which they intend to sell
to you at higher prices later in the day. Remember, many gold
stocks suffer from a severe lack of liquidity. Make that lack
of liquidity your friend and ally during a plunge.
321Gold.com wants you to make
money. Of all the major gold/silver information sites, only we
offer constant updates. Our day as gold bugs is at hand and the
risk/reward ratio of owning gold shares is about as favorable
as I have ever seen.
For less than the price of
a dinner for two, you can contribute to keeping 321gold.com a
thriving site devoted to helping you make money in tough times.
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-Bob Moriarty
Email
September 20, 2002
Nothing we write is
intended to be anything more than our opinion about the merits
of a stock. Before buying or selling any stock, the investor
should do his own due diligence.
The number
of mining companies is small and we are investors for our own
benefit. At any one time we may own 25-30 different mining stocks.
It follows that often we will own stocks which we have written
about.
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 321gold Inc Miami USA
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