Saturday, November 3, 2012
BUY NUGT at $15.20
I purchased shares of Direxion's Gold Miner BULL 3X ETF (NUGT) at $15.20 in the pre-market Friday with the last few thousand bucks I had kicking around.
My TSI Trading record has been updated.
Following my purchase I found it nearly comical that gold then opened Friday's session with a precipitous day-long fall following the 'jobs report'. I guess somebody actually took the report seriously.
In reality, the event was a great exercise in hitting all the stops to take people out of their positions at cheap prices before the next big run up and I guess I should have seen it coming, but I didn't. That 'thinking like a thief' mentality does not come second nature to me, but I'll work on it.
A week earlier I purchased some February 2013 call options on GDXJ as I surmised that gold had bottomed the previous day (Wednesday). And I was correct - until this incredible jobs report came out. Anyway, in the bigger picture I believe that my slight timing error really won't even matter.
I'm not sure how to account for options or futures trades on my trading record so I don't include them.
FWIW, I sincerely believe this is the best time to buy miners for years to come.
I've been doing a lot of work on automated trading strategies for the past couple of months (or more). My skill set has been upgraded as I have become comfortable writing code for TradeStation, in addition to Think or Swim. TradeStation has a significantly more powerful programming language and an infinitely more powerful back testing / automation capability than Think or Swim. I have developed some good strategies and plan to begin making them and their documentation available to readers in the near future.
Not much more to say for now, other than buy with both fists and be patient. We are about to begin a brand new intermediate cycle in gold that should take us up to $1900 rather quickly.