Monday, June 27, 2011

SOLD DAG - $12.78

Click on the chart to ENLARGE
I bought and sold this DB Agriculture Double Long ETN (DAG) in about 3 hours and made 1.8%.  Nothing impressive.  I continue to think the positive divergence that gave me a small gain will assist share price higher, but I lost my interest. There are other fish to fry.
Hey how about that ZSL today? +4.14% today with 20 minutes of trade left to go. It looks to me like it needs to take a breather, TSI wise, but I'll keep holding that trade, just the same.
My TSI Trading Record has been updated.


  1. good evening John,
    I just want to say that ZSL is one of the best set-ups you ever gave us. You hit it just right. I'm sorry I didn't come along for the $$. But, maybe, when you tell us it's time to exit the ZSL, I can add to my SLV shares.
    I'm always on the look-out for a good etf trade. I'm sure you'll keep us informed. How about USO. Positive divergeance? M-

  2. Hey John,
    What are your thoughts on ZSL over the next few days? I'm up to my eyeballs in the stuff. Thanks, Adam

  3. Monty - I do not see a positive divergence on USO.

    A - ZSL. My thought is that the 20-25 day daily cycle of the Dollar may have topped yesterday on Day 13. If so, then the Dollar will be generally lower for the next 6-11 trading days. If that is so, gold and silver should be generally higher over the next 6-11 trading days.

    The TSI (7,4) is today showing a bearish trend line break sell signal on the Dollar. It also made a negative divergence sell signal yesterday.

    But just to make things as confusing as possible, if the Dollar closes red today, with a strong day tomorrow it could easily make a bullish trend line break and continue higher.

    My hunch is that the Dollar will perform the latter scenario and take another whack at the long descending price trendline overhead before this daily cycle expires. That would set it up very nicely to blast up through it when the next daily cycle begins.

    Adam, those are my thoughts. And no, I personally am NOT considering selling my ZSL positions.

  4. John -

    DAG made 13.35 today for 4.22% gain by late day trading . . . not bad!

  5. John, thanks for thaking the time. I greatly appreciate it. Adam

  6. John...been reading up on cycles on your site and smartmoney. I was curious if interest rates or the vix has a daily and intermediate cycle...if so what lenght?

  7. Phil - does not surprise me.

    Adam - you are welcomed.

    Jeff - you asked me this the other day and I answered, "I don't know - I have not studied it".

  8. John,
    On the 26th youmentioned that the S&P looked like it would head down for a while, 200 points or so, it is now up 200 points or so, have you changed your outlook?
    I don't see any strong bullish indications.

  9. Anon - "the S+P is now up 200 points or so", since two days ago June 26th? Really?

  10. Only came across your site recently John and have been enjoying reading back and getting a sense of how you interpret the charts. Been learning a lot. All the background on the gold cycle was news to me.
    Also I also wanted to say thank you for the daily DAG Monday. I was a bit bored in the office and had a flutter to add some excitement to the day. Great fun. Didn't actually come away with much more than a fill of gas after the brokers took their slice but getting in and out in a few hours -- and in the black too -- put a nice bit of excitement into an otherwise bland workday. So, if you come across another that looks like it's an up and comer for the day, you're willing to share, I'll be on the lookout for it, and in for another ride.
    All the best.

  11. Sorry about the name on the last post. Think I left if go as unknown before I spotted it. But it's John. Let me see if I can get it right this time. Anyway thanks again for DAG.

  12. John,
    Mea culpa, one zero too much. But the DOW is over 200 points up and add more for today.