"
Take a look at
this chart carefully, if you look at it nothing much
happened in the price of this stock from
95-96, then you had a
approximately 500 % rise which is hard to see but if you
look closely you will notice it from 50 cents to a high of
about 2.50 in early
1996, by August 1996 it had given up a huge portion of these
gains, it was now about 96 cents, by December of 1996 it had
virtually
given up all the gains it was now at 64 cents. And then till
about the end of 1997 it traded in this range to a high of
1.80, it never got
back to the high it set in 1996 ( most TA specialists would
have said this failure to take out the high was bad news and
told you to
dump this stock), you can bet most people bailed out and
said this stock was dead, it had made lower highs and it was
going to hell.
Then after over one year of
sideways action it finally started to move in 1998,
it went from 1.50 in Dec of 1997 to a high of about
10.90 in August of 1998, and then once again pain was felt
it dropped 50% and set a low of 5 dollars in April of 1998
after which it
proceeded to blast of and did not stop till august of 1999
when it set a high of 71 dollars, then
it proceeded to bull back in a gut
wrenching 50% correction to about 37 dollars in June 1999,
from there we proceeded to set a lower high in July at 63
and then had
a another pull back and set a lower low of 35 on August
1999, which most Technical Analysts would have called a
confirmation that
we were going Down but exactly the opposite happened we
never looked back again we entered the super hyper bull
stage and made
a high of 162 on 1/04/2000 and when we started to fall then
all the Penguins started coming out screaming it was time to
buy, buy,
buy on the dip even when the major up trend was clearly
violated in 2000 a few days after the high was set and then
another
confirmation was given when we made a much lower high on 135
on march 2000 and still the same individuals that thought
this
stock was dead in 96, 97, 98 and even in 99 were now
pounding the table that you should buy on the dip and looked
what happened
every time you bought on the Dip you just kept losing the
desire to follow the crowd is huge and the crowd is always
wrong and so are
the penguin Analyst. The choice is very clear, a few
subscribers have left and I expected that because many
people look for fast and
quick gains not realizing that anything that comes fast is
not a really a big gain but a small gain when one looks at
the big picture,
you could have made 500% and bailed out in this stock
on its first run up and you would have at that moment
been very happy had
you done it yourself or some advisor had helped you, and you
would have been mad or even thought about canceling your
subscription
or firing your advisor that told you to hold longer, but
when you sat back and looked at what you lost, you must have
cried silently to
the wee hours of the morning because you just gave up over
101,212% of gains its a low of about 16 cents to its
high of 162
(granted most people did not or would not have gotten into
this stock this early), but you could have bought it around
1.50-1.62
(since it traded in this range for over a year) which was
not to hard to do you would have made 10,000% now ask
yourself this
Question did you really win, suddenly that 500% looks pretty
pathetic doesn't it.
Only two kinds of
individuals made it in this market
The ones that bought and
held to the very end and also remember very important sold
at the right time ( total percentage of this
individuals range from 2-5%, closer to 2%%)
And the market timers who
timed the ups and downs of the markets (total percentage
here is in the 0.5-2% range, I
would suspect 1% would be more accurate of those that
timed it well)
Now lets look at where at
the second stock
Ladies and Gentlemen: we are
just in the channel formation stage, if you bail out now you
will cry for a very long time
and bitterly a few years down the line, when these prices
are never seen, remember many gold stocks went up over 500%
from their lows and many of them have given a huge
percentage of those gains back, just as the previous stock
did when it first
broke out and then again and again, but
the main thing was that the main trend
was still up as is the case with gold, the Main
trend line is still up. On the second stock we are just at
the beginning of the huge channel formation stage, we have
not even begun
the major bull market move, then we have the hyper bull and
then the frenzied stage.

For your records the first stock was
CMGI and the second stock in GSS
( a gold stock)
The only problem with the
Gold market is that its 100 times if not more manipulated
then the internet market ever was. So it needs a bit more
scrutiny and analysis than the dot com era ever required. In
addition the GOLD
market will have one more stage
the mass fear and panic stage.
The choice is simple, listen
to the penguins who are telling you to bail out now and buy
everything else or turn a deaf year to them and for once
take a risk on your own look the charts they don�t lie( long
term charts) the trend will always be your friend, don't
forget that.
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