CHART SIGNALS & ANALYSIS
(2 months of time, 30 minute bars)
Opportunity Knocks in Juniors'
Sector
Dev Cheekock (Sprout)
email: dev@goldsproutprofits.com
written Sun Oct 9, 2011
posted Oct 10, 2011
Sprout Model Portfolio
Minimum position size
per holding: About 1.5%.
Maximum position size per holding: About 6%.
There is a touch of discretion
allowed with the holding limits, but I strongly urge you to use
that discretion only on the rarest of occasions.
General Commentary
Today I'm covering
the juniors side of the market, and I want to start by asking
you to step away from the charts for a minute. The junior stocks
have been in a financial drought over the last little bit, and
they will take time to recover. Investors aren't looking for
a 40 or 50 percent gain from these levels. You want more, because
you need more, to recover from serious drawdowns on your positions.
There is a huge upside to the majority of junior metals stocks.
The sooner you get that wrapped around your head, the better
your trading days start to get.
As hard as it is to buy into these lows, there is no other option.
What are you going to do, sell at a loss? Buying into these lows
is where the big money is made. In 2008, stocks plummeted to
these same areas, and rose dramatically.
Most investors see it as a recovery, but for those that bought
the lows, it has been a rocket ride. Because the financial system
is more unstable now than it was in 2008, I believe the junior
stocks will have a huge move higher, but it will be a bit of
a bumpier ride.
GLDX-NYSE (Gold Explorers)
Click
here now to view my analysis of GLDX
Holding. In my model portfolio for subscribers,
GLDX is now 2.96% of the portfolio. While I never like to go
below 1% or above 6% for any one security, keep in mind that
three exceptions to my position limits are cash, physical silver,
and physical gold.
Price Range. For the five day range, I'm projecting $10
to $15.
RSI. The current reading for GLDX is 32.88, in a falling
trend. In terms of valuation, the RSI is currently in a relatively
low area.
Bollinger Bands (100,2). The current price of $11.78
for GLDX is near the middle Bollinger band. Buyers should dominate
near $10- $12, and sellers near $13- $15.
Volume. Really big buying should happen near $5 and big
selling at $20.
In-House Oscillator (Sprouticator). I use a blue Sprouticator
for buying and a red one for selling. The current reading of
2 blue indicates light buying by the pros.
GLDX Technical Summary: The price is relatively neutral.
For the next 5 days I would like you to work in the $10 to $15
range.
The Bottom Line: Buy GLDX around $10- $12. Sell at $13-
$15.
***
REMX-NYSE (Rare Earths)
Click
here now to view my analysis of REMX
The rare earths offer phenomenal long term upside potential profits.
While the earths are rare, so are your opportunities to buy at
the kind of price you got just days ago. You don't need to back
up the truck, but I think you may want to buy something, on any
pullback to my buy range, even if it is small. The volatility
in this sector is not going away, but neither is the opportunity.
Opportunity is knocking. Open the rare earths door!
Holding. REMX is 2.70% of the portfolio.
Price Range. For the 5 day range, I'm projecting
$14 to $19.
RSI. The current reading for is 49.16,
rising, with a neutral valuation.
Bollinger Bands (100,2). The current REMX price of $16.22
is near the middle Bollinger band. Buyers should dominate
around $14- $16, and sellers near $17- $19.
Volume. Big buy volume should occur
near $10, and big selling near $20.
In-House Oscillator
(Sprouticator).
The current reading of 2 blue for REMX indicates light buying
by the pros.
REMX Technical Summary: The price is relatively neutral.
I would like you to work in the $14- $19 range that I project
for the next 5 days.
The Bottom Line: Buy REMX around $10- $15. Sell around
$16- $18.
***
SIL-NYSE (Silver Juniors)
Click
here now to view my analysis of SIL
Holding. SIL is now a solid 3.48% of
the portfolio.
Price Range. For the 5 day range, I'm calling
for $19 to $25.
RSI. The current reading for SIL
is 47.18, and it is falling, with a neutral valuation.
Bollinger Bands (100,2). The current price of $21.77
for SIL is near the middle Bollinger band. Buyers should dominate
near $19- $21, and sellers near $23-25.
Volume. Big buying should occur at $15
and big selling near $30.
In-House Oscillator
(Sprouticator).
The current reading of 2 red for SIL indicates light selling
by the pros.
SIL Technical Summary: The price is relatively neutral.
For the next 5 days I would like you to work in the $19 to $25
range.
The Bottom Line: Buy SIL around $19- $21. Sell around $23-
$25.
***
ZJO.TO (Oil Juniors)
Click
here now to view my analysis of ZJO.TO
Holding. ZJO holding is now 2.58% of
the portfolio.
Price Range. My projected 5-day range is $14 to $18.
RSI. The current reading for ZJO is 53.50. The RSI is
now in a falling trend. In terms of valuation, the RSI is currently
in a relatively neutral area.
Bollinger Bands (100,2). The current price of $16.30
for ZJO is near the middle Bollinger band. Buyers are likely
to dominate near the $14- $16 price area, and sellers near $18-
$20.
Volume. Big buy volume should come into play near $10
and big sell volume near $25.
In-House Oscillator (Sprouticator). The current reading
of 2 blue for ZJO indicates light buying by the pros.
ZJO Technical Summary: The price is relatively neutral.
For the next 5 days I would like you to work in the $14- $18
range.
The Bottom Line: Buy ZJO around $14- $16. Sell around
$18- $20.
***
TRX-AMEX (Tanzanian
Royalty)
Click
here now to view my analysis of TRX
Holding. TRX is now 1.42% of
the total portfolio.
Price Range. My projected range for your
next 5 trading days is $3 to $4.
RSI. The current reading for TRX is 43.55 and falling.
In terms of valuation, the RSI is currently in a relatively low
area. An RSI of 43 in one situation could be neutral, while in
another it is indicating value, and that's the case here.
Bollinger Bands (100,2). The current price of $3.48
for TRX is near the middle Bollinger band. Buyers should
dominate near $3- $4, and sellers near $4.50- $5.50.
Volume. Big buying should occur near
$2 and big sellers near $8.
In-House Oscillator
(Sprouticator).
The current reading of 3 blue for TRX indicates light buying
by the pros.
TRX Technical Summary: The price is relatively neutral.
For the next 5 days I would like you to work in the $3- $4 range.
The Bottom Line: Buy TRX around $3- $4. Sell around $4.50-
$5.50.
***
UXG (US GOLD)
Click
here now to view my analysis of UXG
Price Range. My projected range for your
next 5 trading days is $3 to $5. In my model portfolio for subscribers,
my UXG holding is now 2.28% of the total portfolio. A 2.28% holding
for any holding is solid.
RSI. The current reading for UXG is 41.56 and falling.
In terms of valuation, the RSI is currently in a relatively low
area.
Bollinger Bands (100,2). The current price of $3.79
for UXG is near the middle Bollinger band. Buyers are likely
to dominate near the $3- $4 price area, and sellers near $4.50-
$5.50.
Volume. Big buying should occur near
$3 and big selling near $8.
In-House Oscillator
(Sprouticator).
The current reading of 3 blue for UXG indicates light buying
by the pros.
UXG Technical Summary: The price is relatively neutral.
For the next 5 days I would like you to work in the $3- $5 range.
The Bottom Line: Buy UXG at $3- $4. Sell at $4.50- $5.50.
Today's Sprout Seniors Portfolio is now posted on my website.
Make sure you check it every day. Next order of business is to
place some trades.
Disclosure: I own positions in GLDX, REMX,
SIL, ZJO, TRX, UXG.
###
Dev Cheekock (Sprout)
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Monday October 17, 2011
For 321Gold readers: Email me at testdrive@goldsproutprofits.com and I'll send you my micro gold
futures report and Bollinger bands report for gold and silver
futures. The standard COMEX gold futures contract is 100 ounces.
The mini contract is about 32 ounces. That is still fairly big
if you want to be able to hold a number of contracts, in most
cases. The recently-introduced micro contract is just 10 ounces,
and could be a game changer for the retail investor.
Dev Cheekock [Sprout]
website: www.goldsproutprofits.com
email: dev@goldsproutprofits.com
Click here
to subscribe to my service
MODEL PORTFOLIO
GOLD POSITION LIMITS
Minimum long gold position size: 20 contracts (100oz per contract).
Maximum long gold position size: 100 contracts
Minimum short gold position size: 10 mini gold contracts (approx.
32 oz per contract)
Maximum short gold position size: 100 mini gold contracts.
MODEL PORTFOLIO
SILVER POSITION LIMITS
Minimum silver position size: 6 contracts (5000oz per contract).
Maximum long silver position size: 30 contracts
Minimum short silver position size: 10 mini silver contracts
(approx. 1000 oz per contract)
Maximum short silver position size: 50 mini silver contracts.
For gold and silver,
I never like to go below a net long gold position that is less
than 30% of the net liquidation value of the portfolio.
Risk/Disclaimer: No personal investment advice
is given and all investors should understand that their
minimum risk on anything bought is 100% loss of capital. No investment
should be acted on without first consulting numerous licensed
and experienced professional financial advisors. Nobody should
ever invest more than they can afford to comfortably lose, in
anything.
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321gold Ltd
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