Monday, December 31, 2012
BUY CGR @ $0.53
Claude Resources Inc. (CGR) when are you going to get your *** in gear? Yes, I bought more shares of CGR earlier this morning at 53 cents a pop. It's not that I woke up today planning to buy more. I have more than enough of this stuff already. But I looked at the daily True Strength Index (TSI) (7,4) and saw something rather odd - it was a double trend line break BUY signal.
So I flashed through all my locations to see if there was any news, any change in projected earnings, any company filings, anything whatsoever to raise a yellow flag.
So then I looked at CGR on the weekly chart with the TSI (7,4) and wondered again if I was seeing things. After the open today price was trading at around .525 - .53 and the weekly TSI was showing something like -0.91. Wow, I thought. That is an extreme reading - incredibly extreme considering this is a weekly chart, not a daily!
I tried again to find any reason in the world to not buy more. Nothing turned up. So I started watching the stock and thinking, thinking, thinking. An elephant with a kazillion shares was sitting on the ask at 53 cents - holding a lid on price.
Then, the elephant just kinda disappeared. I've always wondered about these things and have developed a theory. Heaven only knows if it is an absolutely insane theory - maybe someone can let me know.
Anyway, if someone owns a kazillion shares of some small miner and wants to bleed all the blood they can out of the remaining shares that may be out there, what better way to discourage competition from other buyers than sit their fat *** on the ask and tell all interested buyers to take a hike. It's a ploy.....it's a way to intimidate and discourage buyers.
Would you be encouraged to buy when someone sitting with a kazillion more shares than you is posturing to dump their load right then and there? Talk about 'look out below'.
And it could even be a good tactic to scare little sellers into selling their shares before the elephant decides to sit down on everyone and smash the price down another 10%.
Anyway, and as I was saying, the elephant just kinda disappeared. That was my cue to buy, and that I did.
Here is a daily chart of CGR:
And here is a weekly chart of CGR:
My TSI Trading record has been updated.
I see the elephant has now parked at 55.5 cents but has been hit for 100k shares since I last looked. Tisk, tisk, tisk. If my theory is correct that may not have been what the elephant had in mind. Maybe the vultures are circling overhead?
Whatever - it's all a game. But I also think it's just a matter of time before the rules of the game get reversed in my favor.
Happy New Year's everyone!