I was encouraged by the strong performance of the precious metal complex today and hope it bodes well for the next few weeks, at least. So I did a little shopping before the market closed and made three purchases.
The first purchase of Coeur D'alene Mines Corp (CDE) at $27.25 felt kinda odd to me. I can still remember buying and flipping this stock a couple years ago for around $1. Now granted, they have have a reverse stock split since then, but to buy CDE today for 27 times the price of my memory was kinda weird. Anyway, if silver is going to go to the races now, and that is an 'if', I think I need to own a silver miner - like CDE.
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Click on any chart to ENLARGE
My second purchase was of Keegan Resources Inc (KGN) at $9.03. The True Strength Index (TSI) indicator setup looked good and I was also pleased to buy something that did not appear to have any overhead resistance.
My third and final purchase today was of Northgate Minerals Corp (NXG) at $3.15. I like to own some stocks that I regard as having extra value. A couple years ago I could buy a mining stock selling at .2X Book Value. Even within the last year it was not too difficult to find one selling for well under 1X Book Value. But times have changed - so with NXG selling at 1.6X Book Value, this is in the range of the best 'value' available in the stock market today, using the Book Value metric, anyway.
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My TSI Trading record has been updated.
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hi john.Great work indeed.I just would like to know if you still have a position short on sp500 with futures (as i am), and if you're still thinking in a deep correction in stocks market.Not precius at this point.Thank you very much
ReplyDeletedaniele
Hi Daniele -- hey, that is quite some bird you have there in your picture. What is it? And the dog in the back ground is not a wolf, I hope!
ReplyDeleteYeah, I am still short the S&P with a couple of futures contracts. Kinda waiting for the other shoe to drop - assuming it is going to drop. If the US Dollar decides to continue doing sky dives, as it did yesterday morning, my position my end up becoming burned toast.
Forgive me, but this market is so manipulated (thanks Ben) that it really is frustrating to trade. Anyway, with enough patience I do indeed think my short position will eventually become very profitable.
Geez, you are really paying attention if you remembered I was short the market. I better be very very careful what I write. Lots of eyes out there - even in Italy!
Thanks for writing Daniele.
hi john, of course i'm really pay attention at your site.With such a good track record as yours, i have a huge consideration in your choices!!!And i'm still trying to follow your step (and gary too).About picture, the bird is a corvus corax (not common crow).He's just 8 months old (60 cm for 1,2 kg) and the dog is not a wolf of course, but my dog, similar at deutch shepard.Have a great time on this end of the year and new too.Hoping to ride the bull on precius market.I'll continue on reading you every day.
ReplyDeletethank you for sharing.