Hi Larry - What's your latest thoughts on Newmont? I had some calls (LEAPS) that stopped out last week for a decent profit. I see it has dropped a little bit more. Do you think it may be a good time to jump back in?

Dave

My favorite place to buy gold stocks is when gold gets down to its 40 week moving average. But I already own quite a bit of NEM and am not in any particular hurry to add more. However, if I didn't own any at all I would probably be more eager to get in.

The area around the lows so far today may serve as pretty good support - the September closing high, around 42.40 or so. Below that, I would say the area around the rising 20 day EMA (41.77) would be a logical entry price. And below that the area around the 50 day SMA (40.14) has been a very good entry level in the past.

My style would be to have multiple entries - buy a little at the first level and be prepared to add at other levels. But that all depends on your time frame, how tight you want your stops to be, and a bunch of other factors.

Larry

Hi Larry - Thanks for the different options on getting back into this stock. Re-entry after being stopped out is one area I would like to get better at.

Dave

Gold stocks are especially tough because they move up in fits and starts. With some stocks it's better to buy on breakouts. But with gold stocks, I like to buy on weakness.

Larry