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  

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 

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!!

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!!

Thanks for your comments Gu$tavo 

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

Desert Sun Outlines New Conglomerate Zone at Jacobina Mine, Bahia Brazil

Desert Sun Updates Drilling at Pindobacu in Bahia Gold Belt, Brazil

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 !

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 

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.