Thursday, September 2, 2010

SOLD BRD $1.27 BUY CGC $3.34

I really mistimed the purchase of Apollo Gold Corp (BRD) five weeks ago.  Almost from the day I bought it I was in the red.  But, I hung in there - believing in the gold secular bull - and today pitched that position for a miniscule 1.6% gain.  The price is now up in the Upper Bollinger Band and I figured I could find something else to buy with a more ideal setup.
Click on the chart to ENLARGE
This is Capital Gold Corporation (CGC) on a daily chart.  Now this is what I call an ideal setup.  We have breakouts of both the True Strength Index (TSI) and Money Flow Index (MFI) indicators, as well as a huge positive divergence and a near ZERO crossover.  Doesn't come much better than this - at least so I think.  Oh forgot to mention the significant insider buying 2 days ago.
My TSI trading record has been updated.


  1. Hey John, this may be a somewhat off your topic. But checkout the action yesterday with TRE. On no news! I would be interested in whether you would sell into this action, buy, or wait and watch.

  2. Rick - I would sell. That is NOT to say that my judgement is right or infallible, because I know my judgement is flawed and indeed fallible. But I would sell.

    Why? Well, assuming I had bought TRE because it had a great TSI and MFI setup (which it did now that I look at it and will add TRE to my portfolio of potential buys) I would take the easy money and look for another great setup.

    I cannot tell you how many times I have been in a situation as the one now for TRE stockholders, and ended up giving back a whole bunch of money because I did not get out.

    Look at recent CDY - which I still hold a good slug of. If I had taken the whole tamale off the table when I did a partial take off, I could put it all back on at the currently lower price. That is the kind of thing I am talking about.

    Sometimes it's tough to make money in the stock market and when they give you some, I have learned to take it and ask questions later. If the stock continues up without me later, so what? 4,000 other stocks went up yesterday without me and I that didn't bother me either.

    Thanks for the question Rick.

  3. hi john,

    do you still think vgz is a bargain at that price?

    it has made some move since you posted about it..


  4. Wow Jack - look at that! I had no idea VGZ doubled in 3 weeks, nor that it would do so. Incredible. Not a bargain anymore, then. But a good example of what is going to happen to all miners, over time, that are selling below book value (like CDY, MDW, DROOY, CLHRF, CDE, KXM, and SRCH).