RE:RE:Strong Bottoming Action! Hi hanscazan,
While I am bullish on the gold sector, I don't think that we can be complacent about the long side.
We are still in the early stages of the basing action.
Personally, I am currently aggressively long miners and GDX and SIL and gold and silver futures.
I think that we may have a muti-week or even multi month rally ahead of us.
It is even possible that it is multi year bottom.
But, I also realize that I may be wrong and I may be playing defense Monday and reducing my risk exposure.
There is no way to accurately forecast the future.
The future is unknown.
As traders and investors we have to be responsible and control risk and do proper money management in order to survive.
I look at the markets every day with no preconceived notions of what will happen.
I simply have strategies to control risk when I am wrong about the trend that I am committed to.
Learning proper money management and risk control allows traders to be fearless in committing to the long side, when the evidence seems compelling that gold has based.
And, if we have large positions, it keeps us from going broke when we are wrong about the trend.
That's why I say that money management is more important than forecasting ability.
goldguy