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Early in yesterday's Thursday session I made a couple of purchases. This first is seen on this daily chart of Bullion Monarch Mining (BULM) at $1.15. The True Strength Index (TSI) and Money Flow Index (MFI) indicators appeared very favorably bullish with trend line breaks and a ZERO crossover of the TSI. I hoped that these factors, combined with the unusually small float of 38.5M, would result in a nice quick pop upwards.
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Unfortunately, quite the opposite occurred when the precious metal miners were taken by siege as a bought of profit taking swept though the sector in the later morning. BULM closed the day down from my entry point at $1.10. This is an excellent example of executing an ideal setup and yet it failed - at least for the first day. Did I forget to mention that NOTHING works all the time?
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My other purchase yesterday is seen on this daily chart of Harry Winston Diamond Corp (HWD) at $11.62. My hunch is that the adjustment in price since the December 10th 6-K disappointed the market has been fully digested. It appears that buyers are returning, hopefully, to push price higher, as both the TSI and MFI are showing huge positive divergences from the otherwise flat price movement.
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Click on either chart to ENLARGE
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My TSI Trading record has been updated.
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US Dollar update: Overnight the US Dollar has continued to plummet and has sliced right through its 50 dma without so much as a hiccup. The case for the precious metals bulls appears to be getting stronger with each passing day.
Nov. 23 Weekend report
1 day ago
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