3SOF

Yesterday on my filter about 40% of the stocks were mining related stocks. I've opted for DEZ, because technically it is on a sweet spot to make a bullish breakout of the $2 resistance level.

Volume was a lot above average on a white marubozu. I'm buying because I believe $2 will soon be a support, instead of a resistance level.

33.3% of the 3 SOF Fast Portfolio, as usual.

I really don't know enough to know why, but Gold is extremely bullish at this point. It decoupled from the US Dollar and yesterday it rose 10 bucks to new 17 year highs, again, in the face of a rising US Dollar  :o

The decoupling of gold from the US dollar and its bull run could possibly be explained by something that CNBC has been reporting in the last day or two, namely that a lot of the middle eastern oil money is going into gold now. 

There does appear to be a downward trend in oil prices that could take us back to $50 (Boon Pickens says so anyway, and he called $70 pretty well), so perhaps they are reinvesting the large oil profits in gold during the oil downtrend?  Of course there is also the inflation hedge that has played a part as well.

Good pick again. Applaud David.

Though Friday is the worst day to sell, I would not like to see this stock closing below 1.85.

Quote from: tokyopua on November 17, 2005, 12:38:11 PM
The decoupling of gold from the US dollar and its bull run could possibly be explained by something that CNBC has been reporting in the last day or two, namely that a lot of the middle eastern oil money is going into gold now. 

There does appear to be a downward trend in oil prices that could take us back to $50 (Boon Pickens says so anyway, and he called $70 pretty well), so perhaps they are reinvesting the large oil profits in gold during the oil downtrend?  Of course there is also the inflation hedge that has played a part as well.

Thanks for your input tokyopua, since I don't have CNBC at the office I didn't saw that rumor.

Quote from: stocky on November 17, 2005, 11:05:30 PM
Good pick again. Applaud David.

Though Friday is the worst day to sell, I would not like to see this stock closing below 1.85.

Thanks stocky, good luck  :D

I guess DEZ opened too high yesterday, with a considerable gap up, and it couldn't hold on to those gains. I don't think Thursday's breakout was false, although the stock closed below $2.

Maybe the breakout level was more $1.97 than $2.

Considering the Gold chart below I can't see nothing but higher prices for DEZ. I consider yesterday as a profit taking day and I'll continue holding DEZ for some time on the 3 SOF Fast Portfolio.

David, excuse me. But I don't see any interesting in this one.. The company happens to not have any revenue and in an all data chart seems to have a ceiling @ $2.12-

I hope to be wrong because I want the best to you and the rest who are following you ...LIKE ME!! 8)

Quote from: Gu$tavo on November 18, 2005, 09:10:16 PM
David, excuse me. But I don't see any interesting in this one.. The company happens to not have any revenue and in an all data chart seems to have a ceiling @ $2.12-

I hope to be wrong because I want the best to you and the rest who are following you ...LIKE ME!! 8)

Thanks for your comments Gu$tavo  :D

What do you mean «no revenues»?

«(TSX:DSM)(AMEX:DEZ) reports revenue for the third quarter ended September 30, 2005 of CAD$9.0 million, generated from the sale of 16,400 ounces of gold at an average selling price of US$442 per ounce.»

Yes, I agree, resistance at $2.12 and that may be the reason why the stock couldn't hold above $2.

Today there were 3 press releases:

Desert Sun Further Confirms Major Extension at Canavieiras in Jacobina Mine Area, Bahia, Brazil (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=47985&guid=%7BF0B51108%2D5C15%2D4D3C%2D8C7E%2DACC43AE1ED7B%7D&symb=)

Desert Sun Outlines New Conglomerate Zone at Jacobina Mine, Bahia Brazil (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=47985&guid=%7BAA0EC0DA%2D13A5%2D4CF8%2DB0B9%2D71F74C708918%7D&symb=)

Desert Sun Updates Drilling at Pindobacu in Bahia Gold Belt, Brazil (http://www.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=47985&guid=%7B3C519EED%2DBC0D%2D450C%2DA765%2D3EF6E498EA22%7D&symb=)

All good news. Perhaps they will help the stock break the $2-$2.12 resistance area. I think only technical reasons are holding this back.

My trading plan is:

Hold unless the stock is set to close below $1.85.

DEZ needs to rise more to reflect the bullish move in the Gold price towards $500 an ounce !

On my filter about 40% of stocks were gold related stocks, I expect a white marubozu to take DEZ above $2.12 before the end of November.

I'll continue holding DEZ.

No need to wait until the end of the month to break 2.12. It broke 2.12 TODAY ! GREAT pick David !


;D

since it's broken through the 2.12 resistance, do you think it's still good to jump in?

David, did you have an exit price or did i miss it?

thankis

Compared DEZ with TTWO, the later seems to be a better selection. It breaks out the base today with good news and may continue the run up.

The computer game sector will have a holiday run.

Here is the chart:

Great pick for 3SoF Fast David. I bought yesterday at 2.01 shortly before the close. My target is the top of the channel in this chart. I'd estimate that top is ~$2.30. Maybe it hits there this week and I can get out with some fast money.

^ Looking at my chart and one thing I notice is everytime RSI has hit 70 in the past six months the stock has pulled back :-\  RSI is at 69 now. Will be interesting to see if it happens again.

I really like your chart shawFund, thanks  :D

The upper end of that ascending channel today stands at $2.26, so I'll take profits at $2.25 if I have the chance. Also I don't want to see DEZ setting up to close below $2.12 or I'll dump it.

I believe the stock will be able to hit $2.26 today, with Gold at $493 an ounce, we'll see.

Unfortunately DEZ didn't make it to $2.25 where I was taking profits, the high of the day on Wednesday was $1.23. The candle left on the chart is a bit bearish. I'll take profits around today's open on DEZ.

Over the weekend I'll try to pick good stocks for the 3 SOF Fast Portfolio for the 3 days left in November.

Don't have the link but DEZ today announce financing via sale of 8M shares at C$2.5 each (approx $2.13 USD). Expect the stock price to fall to that level today in reaction to this news.
I sold my DEZ Friday on the touch of the upper channel $2.30.

I kept it .. and now paying for it...  >:(

DEZ is trading in a pretty clear ascending channel. I quite like DEZ here as a short, right at the top of its trading channel, above the upper bollinger band, RSI touching 70 (previously signal for return to lower channel area). Sure DEZ is not the best short out there, but it can be a safe trade because if you short near the top of the channel you need only have a very close stop (just above the recent high of $2.49, the spike above the channel). Profit target would be around $2.05

near new 52 weeks high

www.streetinvesting.com: Begins Research on Desert Sun Mining Corporation
Friday , January 06, 2006 13:01 ET

Jan 06, 2006 (M2 PRESSWIRE via COMTEX) -- Streetinvesting.com has focused their attention on Desert Sun Mining Corporation (TSX:DSM) after a steady increase in share prices for the second half of 2005. Trading volumes have also been consistent and our researchers are interested in the short and long-term future of Desert Sun. Streetinvesting.com strives to bring true growth opportunities directly to its valued subscribers. Our strength lies in finding these undervalued and under-marketed companies and delivering our research in a timely manner. Streetinvesting.com will be tracking this company attentively for the subsequent weeks and keep interested investors and shareholders posted on any new findings and behind-the-scenes update. For a complimentary and comprehensive report on our current analysis and opinions, please visit www.streetinvesting.com for a free membership subscription.

Desert Sun Mining Corporation is a Canadian gold mining company focused on the re-development of their 100% owned Jacobina Mine, as well as exploration of their 155km long Bahia Gold Belt property, both located in the state of Bahia, Brazil.

Gold production has become a major source of income for several countries of the Amazon region, especially Brazil. In fact, Brazil has become the fourth largest producer of gold in the world.

The Jacobina property has had over US$110 million previously invested in its development and contains a 1.5 million tonne per year processing plant. From 1983-1998, the property produced approximately 700,000 ounces of gold, after that, the mine was closed and placed under care and maintenance as a result of the low gold prices of the time.

Consolidating in range of 3.45 - 3.70 range.
- Dhiraj

Went beyond 4.00

My pick for the contest and havent seen it posted.
4.34 close today

Quote from: dhiraj19 on January 30, 2006, 05:51:18 PM
My pick for the contest and havent seen it posted.
4.34 close today

Hey Dhiraj, your pick was declassified by Ramsburg, see the link http://www.3stocksonfire.org/trading/index.php?topic=4349.msg42600#msg42600

DEZ is going great, shame for me I sold real early and never got back in.

Good Luck

Quote from: dhiraj19 on November 28, 2005, 10:05:46 AM
I kept it .. and now paying for it...  >:(

Congratulations dhiraj19!!!!  Amazing how you were kind of dissapointed at first but your patience definetely paid off......... Do you still hold it?

Dez is doing great.  I have both AUY and DEZ - anyone else out there have some?

DEZ is around $5 now as a result of being bought by AUY (.60 of each AUY share).  Does anyone know where $GOLD is going?  It seems to be sitting on the support line of the upward trend channel. I don't know how to post charts...