Hi 440!

Actually my stink bid at $3.06 is still in place, but I did put in another bid earlier this week that got filled at $3.27, just to add a few extra traders to my position.

I think the subprime problems are going to be a factor for a long time, and we can expect triple digit losses on the major markets for many months. However, I also think that there is a lot of money that is quietly being thrown into the market to prevent a total collapse. Money that is in the forms of bailouts for the big idiot banks that left themselves dangerously exposed. And money that is fed in by the Plunge Protection Team (working group on financial markets) that has the mandate to happily buy stocks and futures on any day that there is weakness.

I am not as bearish as many others about the fate of the markets. There will be some losers, and I doubt the DOW can stay above 13,000 indefinately, but I do not expect to see a collapse.

Now what will probably come to pass is with all that money being created out of thin air to keep the market healthy, inflationary presures will continue to grow, and the US dollar will continue to drop in value against other currency. So yes, that will be very gold bullish. However, gold and the PM juniors will be so volatile that many people will not be able to hang around. It will be a wild ride and you better really have a strategy and stick with it if you want to get the full benefit of the big gold bull market that is ongoing.

I think the ideal strategy is to hold a core of quality stocks, and designate a chunk of money to trade. That way you are fully loaded for the long haul, but you are also able to sell tops and buy dips, to increase your overall gains.

Some people complain that they are not good market timers. Well here is how it works. If you are long KXL, you have confidence that it is going higher. If not, then you should sell right away. But if KXL dips, that is your time to buy. Add to your core position when the stock is weak. Later on, when it rebounds, you sell the extra shares and pocket the profits. Your core position remains untouched. And you repeat the process as many times as you like, as long as you sell the traders above where you bought them. You do not have to catch the top of every move, or buy the bottom. Just buy value and sell rallies for profits.

For personal disclosure, I have bought more stock this last few days than any other time since the big August correction. KXL is one of the juniors I added to. I have already taken quick profits on some of the other stocks, and then reloaded cheaper yet again. Believe me, if you have great juniors that you know well, its not that hard to make extra money on the volatility. And you do not have to be an idiot on the forums and bash to shave a few pennies on a trade. Just have a strategy and stick with it.

cheers!

mike