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I was fortunate to get an unexpected pop in the shares of Minco Gold Corp (MGH) today and I decided to sell my entire position in MGH and use those funds for something a little more silver related. I bought half of my MGH position just yesterday so the 14.2% gain today was a tribute to the effective timing of the True Strength Index and a whole lot of luck. As you can see from this chart, MGH should continue to do very very well.
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Click on the charts to ENLARGE
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Freeing up money from MGH allowed me to take a healthy stake in the Global X Silver Miners ETF (SIL) at $20.70. My intention at the moment is to hold this position for the duration of the silver parabolic, assuming there is one this month.
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It looks like my timing might be pretty good, as SIL has made a fresh trend line break of the True Strength Index (TSI) and Money Flow Index (MFI) indicators above the ZERO crossover.
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My present goal is to begin shifting towards an emphasis on silver in my portfolio, hence the purchase of Great Panther Silver (GPRLF) yesterday and Global X Silver Miners ETF (SIL) today.
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While looking for something else silver to buy today, I saw this setup and knew I could not pass it up......even though it is not silver related. This is the daily chart of Searchlight Minerals Corp (SRCH) and my purchase at $0.69. SRCH has a tangible Book Value of $1.02 and sells at about 65% of Book Value. The stock traded 100% higher ($1.38) just 6 weeks ago and has been severely pulled down - for no fundamental reason that I can figure out.
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Anyway, what really caught my eye was the technical setup. This thing has all 4 of my ideal buy signals going at the same time. Trend line break of the TSI and MFI indicators, a new ZERO crossover and the springboard effect of an underlying positive divergence between the TSI indicator and price movement. Its really unusual to get this ideal of a setup and I could not resist. Let's see how it turns out, OK?
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As an aside, I was encouraged with the price action of gold today. Gold nearly got pushed into making a swing high last Tuesday, but it survived the test at $1320. Then today gold was threatening to make a swing high if it traded much below $1350. It got close, but survived the test as buyers again did not allow gold to slip. The US Dollar, kinda to my surprise, could not hold $77 and closed sharply lower at $76.74. I don't know who knows what, but this is the kind of price action that I find very promising going into the FED announcement tomorrow afternoon. Good Luck to all!
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My TSI Trading record has been updated.
Wait for the parameters to be met
15 hours ago
Hi John,
ReplyDeleteLooking ate Gold and Silver today, it seems Gold will broke 1315 no ?
What is your opinion about the evolution till now ?
Thanks
until now - or now?
ReplyDeletenow i think gold will continue on its merry way much higher.
until now - just the nonsense of trying to not get blindsided by extreme government manipulation
Thanks John :-)
ReplyDeleteMy post was sent to early :-)
Wow. Incredible market today. I bought some AGQ at near $99 yesterday. I wished I had bought more. Sold them all today @112.5. Looking to get back in after a pullback.
ReplyDeleteWow,John! You're really on a roll! I see you sold great panther already. I'll be checking back to see if you get back into AGQ...maybe small pullback coming?
ReplyDeleteI appreciate your post, thanks for sharing the post, i would like to hear more about this in future
ReplyDelete