Good to be home, I guess. I'm just back from a brief 2 week family driving excursion through Texas, New Mexico, Arizona, California, Nevada, Utah and Colorado. The weather at Venice Beach and along the coast of CA was wonderful. I cannot say the same for the 111 degrees that greeted our return on ugly boring and State Trooper infested Highway 287 in Texas.
Looks like gold has remained stuck within a longer term and shorter term pennant while I was away. The True Strength Index (TSI) on the daily gold futures chart (GC) suggests another pull back this week will be needed to prepare gold for a break out of the shorter term pennant (blue).
Anyway, I took a healthy sized position in Direxion's Gold Miners BEAR 3X ETF earlier this morning at $46.25. I guess I missed the bottom of $46.08 by 17 cents, but heck, that's close enough. At the moment we are trading just below $48.00.
I expect this will be a very short term trade and hope it will end a little ways in the money. Fingers crossed.
My TSI Trading record has been updated.
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John,
ReplyDeleteHopefully I'll be the first to welcome you back. Concur with your prognosis. Today's close on the HUI looked like diminishing energy.
Welcome back. It's been quite a while since you posted.
ReplyDeleteWelcome back John. Stockcharts just added the TSI.
ReplyDeleteBruce
did you sell dust?
ReplyDeleteBruce - that's incredible!!! To think I had to pay to use the TSI 3, 4, 5 and 6 years ago. Then FreeStockCharts came along and made it available to everyone for free and I was really happy about that. Then I figured it might make a good blog subject as few likely knew what it was or how it worked. And now, stockcharts. Amazing!! Thank you for the head's up Bruce.
ReplyDeleteRick - looks like I missed the bottom by a day or two, and I promise you it is NOT the first time. lol
We had a bullish reversal on DUST today that I think may give a couple days of upside finally. That positive divergence is still there as something of confirmation.
Gold Futures (GC) and SPX were NOT able to make a higher intraday high today vs. yesterday so I am guessing that is in our favor at the moment, as well. Also, the slope of the TSI for these two, while positive, is starting to look real sleepy.
I had a nice 3.5% gain the first day and that has now been whittled down to a tad less than 1%. Going to hang in there as long as it seems to make sense.
MrFibs - I like that name. Yeah, holding on. No good reason to sell since my purchase, as best I can tell.