Tuesday, July 12, 2011

Buy DUST @ $40.30 - Summer Trip

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I bought a position in Direxion Gold Miners Bear 2X ETF (DUST) at $40.30.  At the time of my purchase the daily and 4 hour True Strength Index (TSI) indicator was showing a considerable positive divergence which inspired my trade.
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Click on the chart to ENLARGE
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Tomorrow I leave for 2 weeks on a family vacation - we will be driving through many of the states in the western half of the United States, with YellowStone National Park and Seattle as the highlights.
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My TSI Trading Record has been updated.

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19 comments:

  1. VerraJuly 12, 2011 at 3:49 PM

    Have a good trip John!

    Did you place a bracket order?

    ReplyDelete
  2. John TownsendJuly 12, 2011 at 4:35 PM

    Hi Verra - yeah, almost anywhere it is not 105 degrees sounds good to me.

    Thanks for the bracket order idea. I actually know how to do this, finally. I just took care of that. Put in a stop at my buy price of $40.30 and a sell if price should reach $43.00. $2 in commissions (round trip) - why not! Thanks.

    ReplyDelete
  3. AnonymousJuly 12, 2011 at 4:57 PM

    Hi John,

    isn't this going against the gold bull? or do you think that gold is doomed now?

    ReplyDelete
  4. John TownsendJuly 12, 2011 at 5:45 PM

    Anon - hi. Yes, it is going against the gold bull. No, I do not think gold is doomed now. It's just a day trade of no great consequence. Pay no attention, please.

    ReplyDelete
  5. MrMiyagiJuly 12, 2011 at 7:55 PM

    John,
    My wife and I did a road trip some years ago starting from way north through BC, Idaho, Nevada and returning through California, Oregon and Washington.
    Some memorable stops include Death Valley, Sequoia and Redwood forests, Disneyland and the entire Oregon coast.
    Enjoy your trip, send us a virtual postcard.

    ReplyDelete
  6. John TownsendJuly 12, 2011 at 9:48 PM

    MrMiyagi - sounds like a plan!

    ReplyDelete
  7. AnonymousJuly 12, 2011 at 11:44 PM

    thank you john...whats your sell target?

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  8. John TownsendJuly 13, 2011 at 5:48 AM

    Anon - I have a GTC sell limit order in place for $43.00 and a break even stop buy order of $40.30.

    ReplyDelete
  9. ragsJuly 13, 2011 at 6:10 AM

    have a nice trip John --- rags

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  10. John TownsendJuly 13, 2011 at 6:14 AM

    Thank you rags!

    ReplyDelete
  11. VerraJuly 13, 2011 at 12:42 PM

    Good thing you placed the bracket order. DUST is down -8,61% at the moment!

    ReplyDelete
  12. PhilJuly 13, 2011 at 3:08 PM

    The miners and metals are correspondingly "up" (rather significantly in many cases) . . . following Bernanke's hint of "QE3 to come." This could be a resumption of the bull market . . or not. The question is: will tomorrow hold the same as today?

    Whatever the case . . . it will be interesting!

    ReplyDelete
  13. MontyJuly 14, 2011 at 8:53 PM

    John,
    I wonder where things will be when you return? If gold hits $1650 I might buy DZZ.
    It's probably a good play now. I can see the divergence on the 30min chart.

    M-

    ReplyDelete
  14. ILUVPMSJuly 15, 2011 at 8:12 AM

    http://www.majormarketmovements.blog...g-picture.html

    Hi John

    not sure if youre an ew student, if you are i came across this blog and thought you may find it interesting as it has several interesting ew projections for silver... seems silver might go to 100 by mid 2012.

    ReplyDelete
  15. MrMiyagiJuly 18, 2011 at 11:34 AM

    Your TZA patience paid off, hope your vacation is going better than expected.

    ReplyDelete
  16. AnonymousJuly 19, 2011 at 9:02 PM

    I think the miners might come around soon too - they are close to their timing band top. And will either invert and continue or correct. The thing with divergences is you may need to withstand drawdowns before they materialize.

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  17. AnonymousJuly 25, 2011 at 7:41 PM

    john
    stop by smt and say hi so we know your back

    ReplyDelete
  18. jeffJuly 29, 2011 at 5:56 PM

    There it is....the miners are finally above water. I find the divergences often pay off but you maybe underwater for a good while (which makes you question selling). And the 2x funds double your drawdowns which you need to prepare yourself for

    ReplyDelete
  19. jeffAugust 4, 2011 at 4:28 PM

    Dust paid off today.

    ReplyDelete

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