Today I inched myself closer to defensive mode, taking a profit from my Platinum Group Metals (PLG) position with a sale at $2.31, and buying some ProShares UltraShort Silver (ZSL) at $11.53.
First, the chart of PLG, which appeared to be losing momentum on the 60 minute chart when I decided to sell it.
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PLG did finish the day higher, closing strongly at $2.36 and though the daily TSI reading is rather high at +.60, it's always possible the stock will continue to rise before it peaks. There is not, as yet, as sell signal on the daily TSI, fwiw.
This is the daily chart of ZSL at close to the time of my purchase at $11.53. What impressed me was the trend line break and also the positive divergence between the rising TSI and a flat price.
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This trade would have a higher expectancy of profit if the TSI is able to climb above the ZERO line. For today's close, the reading rested at -.14.
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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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Hey John, surprised you made that move with ZSL. It helps me to use the bollinger bands indicator with both the price history and TSI. The price broke through the upper band, which usually indicates that there is a risk of a sell-off. The TSI was also at peak at the time which you bought it.
ReplyDeleteSee image: http://d.imagehost.org/0728/zsl.png
Keep it up by the way, I've really learned a lot from you. I love freestockcharts.com which you introduced me to.. I use it everyday now.
Daniel,
ReplyDeleteAre you saying this was not a good bet ? Or that John could have made a better entry ? Since John thinks MP´s will have a correction in the next days/weeks, wouldn´t a ZSL entry be a good bet ?.
What´s your opinion ?
Thks.
CM
Hey CM, I was merely saying that he could have made a better entry. This is likely to be a good bet for the short-term; I don't have any position myself.
ReplyDeleteHi John,
ReplyDeleteI hope that you are right on ZSL at the end of next week, after an attempt by silver to hit new highs in the meantime