This is a daily chart of the continuous contract of gold (/GC). I have identified the first day of the previous daily cycle (Day 1) and the top of that cycle (Day 25). Also, the current daily cycle began last week and today was just Day 6.
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Click on the chart to ENLARGE
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We should expect gold and silver to continue much higher after today as both are still very early in the daily cycle. Nothing goes straight up forever, of course, but you should notice that the previous daily cycle was, well how else can I characterize it but to observe it was remarkably straight up!
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Soon we will be entering the parabolic phase of this C wave and price will begin to make larger and larger leaps upward. You won't want to miss that so prepare accordingly.
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Today I was pleased to unwind two positions in gold miners and begin a new position in a silver miner.
This first daily chart is of my sale of Keegan Resources Inc (KGN) at the breakeven price of $9.05. Honestly, I have no idea why the price has been skyrocketing for the past 5 days. It sure looks overbought to me. Anyway, I bought KGN nearly 3 months ago and I waited through the entire intermediate correction, under water the entire time, for the bull to bring the price to me so I could sell at breakeven. Today the bull did his job and I did mine (to sell).
This is a daily chart of my other sale today, Jaguar Mining Inc (JAG) at $5.61. Same story, second verse. I had acquired two positions in JAG - one at $7.15, the other at $5.61. Today's sale cleared out both positions. One took a 21.5% loss, the other was at breakeven.
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In exchange for unloading these gold related positions I purchased a silver miner. This is a daily chart of Great Panther Silver (GPL) which I purchased for $4.53. The chart has a compelling trend line break on both the True Strength Index (TSI) and Money Flow Index (MFI) indicator. It appears GPL is just getting started.
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At present I am carrying 13 positions (counting call options on SLW, SIL and CDE), 6 of which are now silver related. I will continue to work toward rebalancing my positions in the silver direction.
My TSI Trading record has been updated.
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John, the ADX is a great indicator for distinguishing between non-trending and trending price movement. And the ADX on gold's daily chart is saying what you're saying -- it looks like gold is now starting a trending move upwards.
ReplyDeleteJohn, I've learned so much from following your work and it has improved my trading abilities greatly. I'm curious as to why you didn't also incorporate an upper parallel line to the horizontal zero line to make this call?
ReplyDeleteHi John, I noticed a press release the GPL just diluted their share price by selling 5,000,000 shares at $4.20 - stock went from $4.84 to $4.20 instantly - has your opinion changed regarding GPL? Your thoughts appreciated!
ReplyDeleteJohn - what are your thoughts regarding the $21MM financing (5 MM new shares) and subsequent dilution of share price?
ReplyDeleteThanks for your feedback as I purchased yesterday! :(
Hi Glenn -- I am busy at work so cannot read the details about GPL, but offhand the announcement does not change my mind one iota. The dilution price is C$4.20 - not sure what that is in US Dollars. Considering the size of the float, this dilutes the overall situation about 4%. So the stock should drop 4% but of course the market overreactes so it drops 10%. lol I could generally care less. Apparently the company thought it need more cash to get the job done, and now they will get that needed cash.
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