Thursday, September 9, 2010

Bought CMIN - $0.635

Just one purchase today, and no sales.  This is a daily chart of Constitution Mining Corp (CMIN).  I took an initial position today at $0.635.  This is another company that I know very little about.  However, a couple of things intrigued me about the setup.  My hunch is that this is a stock that is somewhat 'manipulated' - meaning that it suffers from bouts of heavy short-selling and then furious covering.  The price action back in late July suggests this possibility to me.  If true, as now there is a considerable positive divergence built up with respect to the True Strength Index (TSI) indicator and price, and price has been pushed through the lower Bollinger Band, it appears this thing is spring loaded for a nice ride to the upside.  Indeed, the last time this happened the stock appreciated over 50% in a little over one week.
Click on the chart to ENLARGE
My TSI trading record has been updated.

1 comment:

  1. Hi John,

    Hope you are well. Missing your comments lately. Look forward to hearing your views on this week's development.