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.

No comments:

Post a Comment