Wednesday, January 26, 2011

Tuesday Buys: CDY @ $1.80 and DNN @ $3.31

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Yesterday I bought a couple of stocks to further test drive the new strategy I have been working on for a couple weeks now.  The first purchase was of Cadero Resource Corp (CDY) at $1.80.












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My other purchase was of Denison Mines Corp (DNN) at $3.31. 
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It appears that buying almost any miner yesterday was a good idea going into the kind of market we had today after Ben's signal that he is going to print, print, print.  So it was "too easy" to succeed today.  But I will be back with more attempts to test my strategy when the market conditions are not so favorable.
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Anyway, one aspect of my new TSI strategy involves the identification of positive and negative divergences, as before, but with a new twist to include the identification of what I am calling 'inverse' positive and negative divergences.  I have back tested and ironed out most of my purchase strategies, and now labor to determine the best exit strategies.  
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Soon I plan to post my stock purchases in advance, as well as provide the optimal exit strategy.  I will then not only post the trade ideas, but document how well they work as I attempt to fine tune the process.  I am aiming for a success rate exceeding 75%, perhaps higher.  Time will tell, so I hope you stay tuned.
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My TSI Trading record has been updated.

7 comments:

  1. WILL FOLLOW YOU CLOSELY JOHN AND GOOD LUCK.... tHAT DIVERGENCE ON CDY AND DNN LOOKS VERY SLIGHT. I'M GOING TO COMPARE IT ON THE 4HR AND THE 1 HR AND SEE WHAT IT LOOKS LIKE.
    DO YOU THINK THIS IS JUST A BOUNCE IN THE SILVER AND SHOULD WE WAIT FOR THE NEXT DOWN LEG BEFORE BUYING?
    I TRIED SHORTING THE DOW AGAIN BUT HAD TO CUT MY LOSSES... I MIGHT HIT IT ON THE NEXT TRY
    TOMORROW.

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  2. Hi Monty - yeah, the divergence system/definition I have devised is very slight and for some reason, incredibly accurate. Silver and gold are going to go up now. The SnP should, by my divergence system, fall tomorrow and be red. Over time we will see if what I am discovering is as useful as it appears (to me) so far. Fingers crossed Monty.

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  3. John,

    May I ask you to take another look at the dollar index. Do you agree we are going down to 76?

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  4. Hi there - yes, I agree the $USD will go down to 76 and probably even 73. Conceding that my crystal ball doesn't work all the time, my hunch is that it will soon rise from its oversold condition just long enough to set off the stock market correction that is, in my opinion, way overdue. Other than for that, it is obvious that Ben wants to print until our currency is thoroughly debased.....and he is doing everything he can to accomplish his mission as best I can tell.

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  5. John,

    A few post ago you talked about the daily cycles and the intermediate decline.

    Do you think the intermediate decline is over? Or do you see this as another daily cycle that will top and bottom out, then we start that c-wave?

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  6. Thanks, love the work!

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