Thursday, January 13, 2011

Sold PAL $7.20

Click on the chart to ENLARGE
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In this morning's pre-market I sold my position in North American Palladium (PAL) at $7.20.  I had a very nice gain that I chose to put in my pocket.  The negative divergence of the price action vs. True Strength Index (TSI) indicator gave me pause for concern.
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However, this is a trade and I will be back, as I have every confidence that PAL is going to go much much higher in the next couple of months.  
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My TSI Trading record has been updated.
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8 comments:

  1. AnonymousJanuary 13, 2011 at 9:44 AM

    Not only that but the zero line cross-overs and/or divergences gave some great sell signals. I'm becoming a believer!

    Frank S.

    ReplyDelete
  2. AnonymousJanuary 13, 2011 at 10:03 AM

    but John you are still holding gold stocks,no?

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  3. John TownsendJanuary 13, 2011 at 10:10 AM

    Yes, I still have 12 mining stock positions open at this time.

    ReplyDelete
  4. PreciousmetalsnewsJanuary 13, 2011 at 10:55 AM

    thx TSI I'm finding your analysis enthralling, been trading full time for 3 years and always made money but your taking me to a whole new level, please don't stop

    ReplyDelete
  5. John TownsendJanuary 13, 2011 at 11:03 AM

    Preciousmetalnews - thanks for the encouragement. Your comment is precisely what I have tried so hard for 7 months now to make happen - give others some new tools to be more successful and confident in the market. Thanks for taking the time to give me a pat on the back. I do appreciate that.

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  6. MontyJanuary 13, 2011 at 6:47 PM

    I'm giving you another pat on the back John. I think the TSI is a great tool, but I also am watching the derivative oscillator which you mentioned not long ago.
    I could ask you so many questions,but, could you tell me about the settings on the tsi. I noticed you usually use a 4 hour chart. Would I still use you favorite 4 7 settings for a shorter time range..... 5 minute or even one minute?? I've always wanted to find something for day trading.

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  7. AnonymousJanuary 13, 2011 at 6:59 PM

    Just discovered TSI. Would appreciate any comments about how to expedite use of this valuable tool. I agree with Tom that time is critical.

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  8. John TownsendJanuary 14, 2011 at 3:33 AM

    Monty -- if you have a number or questions, please organize them in an email and send it to me: tsiTrader@gmail.com

    Yes I would still use (4,7) for a shorter time frame. I have heard excellent results reported when this setting is used for 5 min and (13,25) simultaneously used with either 1 minute or tick.

    Anon -- my website is 7 months worth of nearly daily comments on how to use the TSI tool. May I encourage you to sleuth through the Blog Archive? (!)

    ReplyDelete

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