how to stop gambling on penny stocks, page-29

If I may be permitted I will adapt a reading from the old testament Book of Ecclesiastes for the purposes of this discussion:

To every thing there is a season, and a time to every purpose under the heaven

A time to have sold and a time to have bought
A time to have held and a time to go short
A time for the blue chips and a time for the specs
A time for the miners and a time for the techs

Below is a chart of the Australian small resources stocks. Since early 2011 it has not been a time to buy. The chart action of the last 3 and a bit years makes the cries of those who would tell us we should never touch penny stocks seem prudent.....but there are times when penny miners can make you rich quickly....but definitely now is NOT such a time.

Note the little triangle that formed over the last year. Whilst the XJO had a kick ass rally in that same period the small miners managed only an insipid anemic looking sideways crawl. A year ago my hope was that we would see a significant bounce in the minnows after such a dramatic fall...even if that meant only recapturing HALF the preceding fall....but it wasn't to be. I have managed to make a few bucks as things crawled sideways but from here if the big stocks now experience a bear market we might see the junior miners have another leg down back to historic lows...