Weekly Pick

["JimGinVA" <JimGinVA@xxxxxxxxxxxxx>]

All,
     Another great week for the market and my portfolio <G>.  I was stopped
out of my Union Oil Cal Leap calls during the week.  That leaves me with
COMS, DJT, DTM, IOM, IVX, JAWWX, LTXX, NPD, RVR, and SCH stock and Leap
Calls on MU and GTE.  I looked for another Leap call, but didn't find any
bouncing off channel walls that had a decent call price.  So, I decided to
hedge my portfolio a little with a gold stock.  I think there is a good
chance that gold hit a blow off bottom when it gapped down on heavy volume
on July 7.  I narrowed my search to the Barrick Gold (ABX) and Placer Dome
Gold (PDG) Leap options.  I finally decided to go with PDG since I thought
there would be more bang for the buck there then there would be with ABX if
gold does start to move up.  The Leaps were more undervalued and ABX has
hedged more against gold price movements with forward selling.
     PDG at 15.562 has moved up strongly on good volume since its July 7
new bottom at 13.812.  It broke out of a steep short term down trend
channel on Wednesday and then moved up strongly on Thursday and Friday. 
It's far from clear sailing since there is major resistance at the top of
the intermediate term down trend channel at 17.55 and at the top of the
long term down trend channel at 23.  This is not my typical pick where a
stock is reversing a shorter term trend in the direction of a longer term
trend.  There isn't even enough data to draw a short term up trend channel.
 This is really bottom fishing <G>.  However, I feel justified since gold
is the typical portfolio hedge and we have certainly had good profits
lately that may need hedging.  Also, I just have a gut feel that now may be
the time to nibble on gold.  Back to the TA, the CMO looks like it is
moving up off a strong negative peak in April.  The S/C also had a negative
peak in April and looks like it may have made another negative peak
Thursday.  All supporting my major bottom feeling.  Of course I have been
wrong before and will be wrong again, so I'll set a stop just under the new
bottom at 13 3/4.  I won't even set a target until we get a good up channel
formed.  If , the market looks good Monday, I'll open a position in the
Jan99 20 Leap calls (VDGAD - Bid 1.375, Asked 1.562).
      I'll send a PDG.GIF chart to everyone on the e-mail list.  If you are
not on the list and want on, just yell.

Jim