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I bought Cardero Resource Corp (CDY) several times and today I sold 2 previous purchases for $1.17. CDY had a nice strong move today and I wanted to pocket some profit before it had time to think about taking some of it back. It looks like very short term it is due a pullback and perhaps I rebuy this bargain stock if it does.
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My TSI trading record has been updated.
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Click on the charts to ENLARGE
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This is a 4 Hour chart I just made of the US Dollar. I am still refining my understanding of charts like this, but what I see gives me great encouragement for the stock market. It would appear that the US Dollar is going to make one final inane attempt at a new high - which should push stocks down strongly tomorrow, by the way. If the US Dollar succeeds in making this marginal high I don't think it will last long because it will have created a negative divergence with the momentum indicator.
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The US Dollar made a negative divergence a week ago. The critical difference between then and now is that the momentum indicator this time will make a negative divergence right at the ZERO Crossover line. That means that when price falls, the momentum indicator will begin descending BELOW ZERO - and that should mark the Dollar's final high and the Dollar's fatality, once and for all. It should also mark the bottom in the stock market and the beginning of a powerful rally.
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This is a 4 hour chart of Direxion Small Cap Bull 3X Shares (TNA). I love this setup and if I am paying attention at the right time tomorrow, I will probably be back buying another slug of TNA.
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The True Strength Index (TSI) and Money Flow Index (MFI) are both moving with what I refer to as 'stealth'. That means that price is having difficulty going any lower but momentum and money flow are rising beneath the surface and out of ordinary view.
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If the US Dollar does indeed make one last futile stab at a rally tomorrow, that will push TNA down to something south of $32. Perhaps even to a new low around $31.40. Meanwhile, the TSI is nearing a bullish ZERO crossover....moving higher and higher. Without hesitation I would buy TNA if it starts to go below $32. Problem is I am so busy at my work that I may miss the opportunity. Maybe I will put in a limit order for $31.40, just in case I get lucky when I am not able to watch it. :)
Nov. 14 mid day
4 hours ago
John,
ReplyDeleteFrom your trading record, it looks like you did not sell all of your CDY today, is that right? Line 45 still shows that trade is open.
Heck, I still have 3 more trades of CDY open. I've got a lot of this stuff :) As CDY has $1.22 per share in CASH and a combined book value of something in the neighborhood of $1.70, each day or two they continued to want to sell more to me below $1.10, I took it.
ReplyDeleteCheck out lines 45, 43 and 36!
Nice (partial) catch Garry.
john,
ReplyDeletewhen the $ falls badly, will it then be a good time to short bonds?
jack
Valuable information and excellent post you got here! I would like to thank you for sharing your thoughts and time into the stuff you post!! thanks for the useful information.
ReplyDeletemoney