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.

19 comments:

  1. Have a good trip John!

    Did you place a bracket order?

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  2. 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.

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  3. Hi John,

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

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  4. 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.

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  5. 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.

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  6. thank you john...whats your sell target?

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

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  8. have a nice trip John --- rags

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

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  10. 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!

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  11. 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-

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  12. 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.

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

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

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  16. 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

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