Friday, July 30, 2010

SOLD JAG @ $7.93

Jaguar Mining (JAG) has a True Strength Index (TSI) indicator reading approaching a nosebleed level on its 60 minute chart.  Rather than wait to see how much higher it may or may not go, I chose to take my money off the table and look elsewhere.
My TSI trading record has been updated to include this sale.
Click on the chart to ENLARGE


  1. Wow, John, you really must be only a "short" term trader. I don't know for sure, but to me it seems that overbought and oversold would apply more to a daily chart. On the TSX index, JAG hadn't been this low in price since last summer. So on Friday we get this nice spike in the price along with huge volume on the TSX, so to me it looks like it's just starting its move. And on the daily it's still less than 50 on the RSI, so I am surprised you sold this one as quickly as you did.

  2. Simon - you are correct, IMO, in everything you wrote. JAGUAR (JAG) is a great stock to own and hold - especially at this incredibly cheap price.

    In fact, if you look at the current projected earnings data I have posted for JAG, the company is expected to slightly more than double earnings this year, 2010, over last year. And then it is projected to TRIPLE those earnings next year in 2011. That is incredible and honestly I am not aware of too many companies that have these kind of numbers.

    As for my trade, my only regret is that I did not wait patiently enough for a sign that price had peaked. Instead I made the amateur mistake of "anticipating" the top and it back fired. I settled for a 3% gain when I may have had a 5 or 6% gain.

    If you look at my trading record, figure the number of trades including my losses, which is divided by the total percent gain, I average about 3% each trade. So, I should have held JAG on Friday for a little higher gain, but that is my only regret.

    Simon, I have a strategy that kinda works for me and I just chip away with it in my own quirky way. I am keenly aware of not overstaying my welcome with greed as a motivator and would rather take my money - if I have a gain - and go look at the 3,000 other stocks for an opportunity than stay where I may have a short term 'take back' of my money (profit).

    I am sure there are strategies better than mine but I don't care. I do not have to be the best. I do have to live with myself. And for now, my strategy is satisfying to me.

    Thanks for the observations and the opportunity to somewhat explain what my trading philosophy is about. Each person has to find their own way.

  3. Well, it's certainly interesting to know a little about your way of doing things and thanks for that. You're right, you have to go with works for you. I'm pleased I came across your blog about 2 weeks ago. I find myself going to it at least once a day. Thanks for the quality writing and TA.