Wednesday, May 2, 2012
BUY CGR @ $0.89
It looks like Direxion's Gold Miner Bull 3X ETF (NUGT) closed nearly 7% lower today than my sales price yesterday and that I was very fortunate to avoid that draw-down today.
Looking at the True Strength Index (TSI) yesterday using the (7,4) setting I noticed that the TSI slope on gold (/GC) appeared to have temporarily topped and the stock market (/ES) TSI slope had flattened. Today both of these metrics indeed turned lower and NUGT deflated as I feared may happen.
Turning to a major holding in my retirement plan, I noticed that Claude Resources Inc (CGR) has been setting up nicely and so I decided to re-allocate my cash with a purchase of CGR at $0.89. The stock is now selling at well below book value and the earnings projections for this and next year continue to be strong.
My TSI Trading record has been updated.