We may get a chance on Monday to try out some of the theories espoused here the other day under the rubric 'Buying Gold Without Pain.' We much prefer getting aboard when there's weakness to exploit such as we saw on Friday. Newmont in particularly is a favorite because it is one stock that institutional investors absolutely must own if they want to show bullion assets on their books. On Friday they let NEM fall, as strong hands are wont to do when a stock they need to buy starts getting too pricey. At the final bell NEM appeared bound for a hidden-pivot support at 58.21, about a point-and-a-half below current levels. A lesser hidden-pivot support at 59.41 could break the fall, but the one at 58.21 looks more promising as a place to try to bottom-fish. The most important aspect of hidden pivots is that, when they work, they work very precisely. In practice this means we'll be able to bid 58.21 for Newmont shares, using a stop-loss as tight as 58.17. Because of the way hidden pivots work, if the stock turns on the proverbial dime it will come as no surprise. But if it trashes the pivot and triggers the stop-loss, we'll know that a down-cycle of a larger order of magnitude is at work ' in this case, one that would point lower, to at least 57.25. We could attempt to bottom-fish again at that price, risking just a few pennies on the stop-loss; and to do so repeatedly as the stock falls, risking relatively little each time. If one were to lose a nickel per share on each of five trades using this strategy, the 0.25-point total loss could be recouped in an hour if and when the stock finally turns. We needn't buy the
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