Monday, August 23, 2010

SOLD TNA $36.77 BOUGHT DZZ $10.90 and ANO $0.891

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I had purchases of Direxion Small Cap Bull 3X Shares (TNA) on two separate days, coincidentally at the same price of $35.70, and I sold both of those positions just after the open today for $36.77.  I wanted to start freeing up some money for the purchase of more miners, and this was a good way to do it.
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As I am now not able to see a computer for the first 2 hours of trade (due to my job), I took a wild guess on how high TNA may run and got very lucky - missing the top by 8 cents.  
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I am also finding out that my school district internet blocks me from doing any uploading or posting to this website.  So, I take pictures of my trades as best I have time and will now be uploading them after school when I get home.
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Click on the charts to ENLARGE
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My first purchase today was DB Gold Double Short ETN (DZZ).  When I bought DZZ, gold was trading around $1226.  I believe that gold will eventually bottom just below $1200 so I thought I may as well try to make some money while I wait.  This 4 hour chart of DZZ does have a True Strength Index (TSI) indicator break of a trend line, but no BUY signal from the Money Flow Index (MFI), as yet.


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My other purchase today was of Anooraq Resources Corp (ANO).  As I understand it, Anooraq mines primarily platinum.  A looksee of platinum showed it smashed down on strong support of $1500, so I really don't see platinum going any lower, nor do I see ANO going any lower.  
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ANO has been corrected some 25% just since the beginning of this month.  This 4 hour chart impressed me with a trend line break of both the TSI and MFI, as well as a positive divergence of the TSI with respect to price.  At TSI -0.31, we are certainly NOT at the ZERO crossover stage, but I can be patient with so much else solidly in place.
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Some nice people have asked me where I come up with my trading ideas.  The short story is that I have about 100 mining stocks in my www.FreeStockCharts.com portfolio.  I cycle through them in my free time, drawing trend lines on some and look at the interesting ones at various time frames so I can get a sense as to what is going on.  
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I keep a few stocks in my head as looking "almost ready" and revisit them often to see what they are doing.  When everything finally falls in place for one of them, I just buy it.  There is not too much emotion to it other than I say to myself "oh goodie, this finally looks promising".  Then I have to babysit the thing until the TSI and MFI tell me it is time to sell, and I sell.  That is pretty much all there is to it.....day after day.
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My TSI Trading record has been updated.

4 comments:

  1. "Then I have to babysit the thing until the TSI and MFI tell me it is time to sell, and I sell."

    Could a program watch for buy and sell signals?

    Would the programming effort and data feed fees kill the idea for amateur investors?

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  2. I think the difficulty of designing a computer program to correctly draw trend line breaks is a tremendous problem.

    On the other hand, as that technology is likely very difficult if not nearly impossible to master, it also means that smart money cannot develop it either.

    So, if YOU simply learn how to do it yourself, how much competition are you likely to have? That's correct. None. Ha ha ha ha

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  3. John, as today's action shows it is getting more dangerous shorting Au and Ag. That launch this AM suggests something may be up.

    Once options futures close out this week I think the real PM story will show itself.

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  4. Hi Rick,

    Well, I agree with you. Tomorrow morning I intend to get rid of my DZZ position and take a loss, if necessary. The stock market, besides gold, should be at or nearing its final low. Also, the US Dollar could not hold its 50 DMA average today and made something of a reversal candle. Yep, no sense in playing the short side anymore when there is such a huge upside on the way. Thanks for your post.

    ReplyDelete