Sep 5, 2013


1.    Please click here now.  Double-click to enlarge.  That’s the daily chart for ZJO, the ultimate junior gold stocks ETF, run by Bank of Montreal.

2.    Note the RSI oscillator, at the top of the chart.  There’s a non-confirmation in play with price, and price now appears to be “breaking” HSR at 8.53, after hitting the round number of $10.

3.    Please click here now.  Is price really “breaking down”, or, is it now arriving at buy-side HSR of $8.60?

4.    All price chasers who went into “freak out” mode at $9.50 - $10 are virtually mandated now, to be buyers.  You can’t want to chase price at $10, then buy nothing on a 14{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} price sale.

5.   That’s madness.

6.   Personally, I like to see some blood, guts, and gore, around me, and on myself, when stepping up to the buy button.

7.   Please click here now.  Note the lows at $7.40, $7.25, and the high at $7.38.  Those 3 points of play, if price goes there, create what I believe is a nice re-buy area.

8.   Price would be down 25{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} from the $10 high then, and obviously no price chaser would be seen making “I gotta buy!” statements.

9.   Please don’t confuse areas where I would currently buy with where I’m suggesting price is likely to go.  There’s a 50-50 chance junior gold stocks go to the lows, or blast over $10, via ZJO.

10.              When price arrives in a certain area, and emotions and liquidity flows are a certain way, then I may indicate that price is likely to move up or down, and to point A,B,C etc.  But that doesn’t mean I’m placing any capital at that point in time.

11.              I place capital based on price, not time.

12.              If ZJO doesn’t fall to $7.40, then I may end up being a buyer at $10, or even higher, but only after it trades far above $10.

13.              I have to drop my car off now for repairs, so will do 2nd half of today’s update when I get back, looking at some indiv stks in play.





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