Monday, September 27, 2010

BUY SFMI @ $0.18

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I did some light shopping today and picked up a miner that has recently been taken down 45%.  I am concerned that gold and silver are about to enter a brief correction and would prefer to buy something that has already had the wind knocked out of it, than buy a high flyer that is likely to get taken down.  This is a 2 hour chart of Silver Falcon Mining (SFMI) which I bought for 18 cents. 
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Believe it or not, I used to own this stock when it was just 2 cents.  From those days the stock then went to 50 cents, back down to its 200 dma at 12 cents, more recently back up to 31 cents, and today I bought it on its 50 dma at 18 cents.  Quite the roller coaster!
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Click on the chart to ENLARGE
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My TSI trading record has been updated.

5 comments:

  1. John,

    Can you give some comment for my analysis for CGA (China Green Agriculture)?
    From price history I see a support line at around 8.40 area. The recent TSI (4,7) shows a higher low, which creates a divergence this line and the price support line.The MFI(10) looks to be continuously above a support line. Also a TSI breakout seems to be going to happen at any time. Just based on the chart does this looks a good? I bought it at 8.60.

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  2. Well, CGA looks ready to pop and I think you made a very nice find! Your observations of TSI and MFI are exactly the way I see it. Your getting good at this stuff!! I wish your trade much luck.

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  3. Also I have read your weekend post 3 times. All conclustions seem to have a reason to me except "Gold will take a breath". I don't see any analysis support this. Could you explain a little more?

    I am learning. Thank you!

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  4. Gold is just inches now from making a swing high ($1292) and once it does that gold should be falling into the daily cycle bottom. That cycle is usually between 20-24 days. As we are now on something like day 20 or so, it makes sense that now gold will complete the cycle and get us ready for the next exciting blast northward next week.

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  5. thank you a lot for the guidance.

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