Monday, August 6, 2012

Bought DUST @ $46.25

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.


  1. John,

    Hopefully I'll be the first to welcome you back. Concur with your prognosis. Today's close on the HUI looked like diminishing energy.

  2. Welcome back. It's been quite a while since you posted.

  3. Welcome back John. Stockcharts just added the TSI.

  4. Bruce - 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.

    Rick - 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.