Wednesday, November 17, 2010

Bought SILA $0.74

Today I bought a second stock from my wedgie collection, Gold American Mining Corp (SILA) at $0.74.  As you can see from the chart it has everything going for it that I esteem - True Strength Index (TSI) and Money Flow Index (MFI) indicator trend line breaks, a significant positive divergence between price and the TSI indicator movement, and a near ZERO crossover of the TSI indicator.  I have yet to take a single loss on a setup with these 4 dynamics in my favor.
Click on the either chart to ENLARGE
My TSI trading record has been updated
Gold and silver today performed as I hoped they would.  It appears gold can make a swing low and conclude the current daily cycle with an intra day price tomorrow (Thursday) of 131.37.  This would mean that a new 20-28 day daily cycle for gold would be on Day 1, and price would begin to rise.


  1. John,
    I have been reading your posts for several months now. Excellent work. I also do cycle work, and my research coincides with yours quite often. I got buy signals today for sil and agq. Where do you stand on the major top? By my calculations, it looks like the last week of February 2011, then a topping process lasting several months, and then a pretty large decline which would be shortable. What is your long term view? Thanks for your research.

  2. Tom - thanks for being a reader of mine. I do the best I can, but can never be right all the time.

    As far as my crystal ball for the future, as in gold's price performance next Spring, I sincerely have no clue.

    I know that we are in a secular bull market and that we are in a powerful C wave. I think we are in the second phase of a three phase C wave - with higher prices to come in the very immediate future and then again in the Spring.

    As you know, I tend to try to skin momentum from mining stocks. As long as I can successfully do that, honestly, I just take it one day at a time.

    Right now I am loading up heavy on silver and silver related stuff. It seems painfully obvious to me that silver is outperforming gold and that there is good reason for that to continue, in my opinion.

    If/when we get some kind of climax top to our current situation I will consider shorting silver.....but we are not there yet by a long shot.

    Thank you for sharing your vision of how this will play out. I am certain you are way ahead of me at this point!

  3. Hi John,

    What do you see SILA doing? I've never invested in penny stocks and really don't know what to expect.



  4. Well Bob, you should expect to make a very nice return on your investment if you buy an exceptionally good setup like SILA.

    Geez, I could see it going to $1.00 as it has easily done in the past. It just needs the tail wind of gold going up, which I think it is now going to get!

    Not saying I will hold it until it gets to $1.00, but I have every expectation to make 'something', and making 'something' with 90% of your trades is the way (my way, anyhow) to be a successful trader and make a nice return for your efforts.

    I hope my thoughts encourage you to dip a single toe in the water and see how it feels. (Go slow and easy until you are comfortable/experienced with what you are doing).

  5. Hi John,

    AGQ today is getting fire :-). Nice call for you. Do you have any potencial target in mind and respective time frame ?

    Thanks for your thoughts.


  6. Carlos - my only thought is that gold/silver will not top for another 2-4 weeks, so back up the truck.