Thursday, February 21, 2013

BUY CGR - $0.43

I managed to scrape up some new money and decided to lower my break even cost on Claude Resources (CGR) with this purchase at 43 cents per share. 

My TSI Trading record has been updated.

Here is what the daily chart of CGR looked like earlier this morning.

Click on any chart to ENLARGE

This daily chart was not flashing any particular BUY signal ie. this was not an attempt to perform some miracle timing. Indeed, I would not be surprised if prices continue lower for a bit longer. Obviously, I am not concerned.

The daily chart does show a couple of new indicators I have coded for ThinkorSwim. Wm. Blau invented the True Strength Index indicator (TSI) and he also invented other lesser known indicators, such as the two seen here - Directional Movement Index and Trend Direction Index indicators.

The following weekly chart of CGR did provide me with a considerable smattering of favorable BUY signal technical considerations. I was most impressed with the positive divergence BUY signal on the TSI(7,4) but also noted that the Money Flow Index (10) was hovering at the 50 level - despite a slew of red weekly candles in the volume indicator. 

And heaven forbid we talk about fundamentals! This market is built on fear and emotional nonsense - have I forgotten?  Ha ha. Claude Resources earnings are projected to QUADRUPLE in the next two years. And it is presently selling at just 37% of its book value. Give me a break. I'll buy and just sit. Fine with me. 

Finally, in 2008 I do recall a couple of 'let's trade some miners' experiences that I made a good deal of money on. One was this obscure stock called Orezone. I discovered that of all the legitimate miners, it was selling at 10% of book value. I kid you not. I watched it and studied it for days, maybe even a week or two. Then I loaded up at 11 cents per share. 

For a couple of weeks it bounced back and forth between 11 and 15 cents. Then one morning I woke up and looked at the price. I could not believe my eyes.

It said 44 cents. Long story short, another company just bought my stock in the blink of an eye and I made 300% the easiest way possible.

Soon enough, with current prices stupid cheap, we will begin to hear of acquisitions.....bigger miners buying smaller miners.

Another one I had fun playing with was Coeur d'Alene (CDE). It must have had some kind of split or something since 2008 because my chart says it bottomed at $3.60. But that's not the price I remember trading it. I remember buying and selling it over and over again in something like the 30 - 60 cent range. That kind of price movement every few days made for easy trading. At some point now, as we get to a bottom, no doubt the same conditions will appear. Let's keep an eye out for it, OK?

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