The position I took yesterday, as part of my new trading strategy, B2 Gold Corp (BGLPF) I sold today at $2.41 for a quick 3.9% gain.
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The other position I bought yesterday, as part of my new trading strategy, was Coral Gold Resources (CLHRF) and I was fortunate to sell it at the open today for a gain of 8.1%.
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Click on a chart to ENLARGE
Near the close I added a position in Jaguar Mining (JAG) at $5.61. Apparently the market was bent out of shape by Jaguar's surprise announcement to raise C$90M in senior convertible notes.
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Anyway, there is a positive divergence and gap in price that I hope will work in my favor - and soon.
My TSI Trading record has been updated.
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John do you see this breakout of gold as a real breakout or do you think it will go lower with the next daily cycle. Thanks and enjoy your work
ReplyDeleteJeff - I am pleased to hear you enjoy reading my blog. To your question, I believe this is the real deal for gold....not just a little reaction higher to be followed with more correction and pain.
ReplyDeleteI understand your work regarding ordinary divergences, but I do not understand what you mean when you speak about inverse divergences (I refer to your reply to my comment posted in regard to an earlier posting of yours).
ReplyDeleteI look forward to learning about them.
joe
Joe - inverse divergences are a relatively new concept for me....and probably some guy who has written books on the subject has a different name for the setup (actually, I know of one author who has named it after himself ... shhhhsh).
ReplyDeleteA positive divergence, for example, occurs when price makes a lower low but the TSI indicator makes a higher low. This condition suggests that while price 'appears' to be in a worsening condition, the TSI says otherwise...and that a reversal in price (moving higher) is soon.
An inverse positive divergence occurs when the TSI makes a lower low yet price makes a higher low. This condition suggests that while the TSI measurement of momentum continues to worsen, price has another thing in mind and resists making a lower low itself. It says that price is about to make a trend reversal to the upside.
Both setups result in higher price (buy signals).
I'll do some charts and stuff to let readers see how this works. I'm not quite ready yet - but hope to begin this work when I am ready to share the specific results of my trading strategy in detail. So far the results are very encouraging. Thanks for your question!
Thank you for taking the time to explain the meaning of inverse divergence. Once again your explanation was helpful and crystal clear.
ReplyDeletejoe
John, I find myself really wanting to avgerage into JAG. But the chart looks aweful. It does not seem to be trading in tandom with the Gold market. What do you think of the stock long term or are you just playing for a bounce? Where would you cut your losses. Thanks and love your posts.
ReplyDeleteAnon - I show trading now at around 1.7X Book Value which is, of course, stupid cheap. Also, after losing 15 cents a share in 2010, analysts expect JAG to earn +38 cents a share. The chart to me, and this is just my opinion, looks like the smart money is standing aside to let all the nervous nellies be rid of their shares. Hey, why take a big stake until the sellers are all flushed out? But of course, that is just my opinion. If there is more to the story than the C$90M senior note issue then I plead ignorance.
ReplyDelete