Wednesday, February 23, 2011

BUY SFMI at $0.1515 - US Dollar

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Today the junior miners were more restrained than the larger miners and many now sport obvious positive divergences between their price action and the underlying True Strength Index (TSI) indicator.  Usually, but not always, a positive divergence is resolved with an upward movement of price in the immediately following days.
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With that as the basis of my purchase, I added a new position today to Silver Falcon Mining (SFMI) at $0.1515. 
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Click on a chart to ENLARGE
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My TSI Trading record has been updated.
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The US Dollar appears to be making another left translated daily cycle.  Left translated daily cycles are bearish and usually take out the low of the previous cycle.  We are almost there right now.  The movement of the US Dollar is what is driving gold and silver higher and higher. And there appears to be no change in direction other than dollar lower and precious metals higher.

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4 comments:

  1. MontyFebruary 23, 2011 at 7:28 PM

    John,
    I like SFMI and actually I've been following it for several weeks now. Maybe tomorrow I'll buy some. Now since you have told us when to buy, can you tell us at what price to sell?
    Do you have a target in mind for this stock?
    Monty

    ReplyDelete
  2. John TownsendFebruary 23, 2011 at 11:10 PM

    Hi Monty - yes, on the Tomorrow's Trades (Today!) page it has:

    Trades for Tue. February 22:
    1. Banro Corporation (BAA) / BUY Limit Order $3.32 / SELL GTC Limit Order $3.60 (+8.4%)
    2. Silver Falcon Mining (SFMI) / BUY Limit Order $0.160 / SELL GTC Limit Order $0.180 (+12.5%)

    So, I have a Good Til Cancelled (GTC) order to sell my shares at $0.180

    ReplyDelete
  3. UnknownFebruary 24, 2011 at 10:42 AM

    Hi John,

    On your original posting you said to buy SFMI at .16 which I put in a limit order in for and was filled. Now I see you just put in an order for a fill at .1515.

    Am I misunderstanding your method?

    ReplyDelete
  4. John TownsendFebruary 24, 2011 at 11:01 AM

    Hi Simon -- At the time I posted to buy SFMI at .16 I already had quite a few shares which I bought for .167 I thought .16 was a good price, certainly better than what I already owned. So instead of committing more money to SFMI, I decided to buy my other idea - BAA at $3.22.

    Then yesterday afternoon I was watching things and some moron offered the shares at $15.15. I could not believe my eyes. So in this case I bought more. I will add these shares to my standing GTC limit order to sell SFMI at .195

    ReplyDelete

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