DROOY

[dhiraj19]

David,
Did you sell it, as you were saying?
Dhiraj

[David Randolph]

David,
Did you sell it, as you were saying?
Dhiraj

Of course not, read what I say, I only take in consideration signals on close:

And the market will disagree with my assessment if the stock closes below TL2, which for tomorrow will stand at $1.42. If this situation happens, I'll take a small loss and move on, the first and more important trading rule is to preserve capital.

[stocky]

Quoting Master Swing Trader, Alan Farley

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The Philadelphia Gold/Silver Index (XAU) rallied to resistance at its 2004 highs this month, while the commodity tagged new highs. This is a bearish divergence because gold stocks should outperform the metal at breakout levels, not underperform it. In other words, the index is still range-bound and not in an active uptrend.

The trouble stems from the silver component of the index, which is still trading well-below historic highs. Unfortunately for the gold bugs, this triggers a second divergence because the metals should move together if this were the start of a secular uptrend. The bottom line: Look for the gold rally to fail soon and take the bugs with it.
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Today gold stocks outperformed the undrelying metal and it is the sign that GOLD STOCKS are POISED to move much higher.

Goodluck all

[stocky]

I may be off the board for couple of weeks. I wish david and the community goodluck.

[David Randolph]

I may be off the board for couple of weeks. I wish david and the community goodluck.

Thanks stocky, wish you well too 

If DROOY CLOSE >1.43 => HOLD. If not, SELL.

[gharknes]

The general market is not nice today, I see a sea of red on my screen

[Nightbreed]

i averaged down today(something I seldom do).

I bought another bunch at 1,37 en hold my fingers crossed. lol.

if it is below 1,43 at 21.55 i will sell it all. (it is no that much so it is very easy to sell, no worries there.)

lets see what happens the next few hours.

gr N

[gharknes]

DROOY is quite simply tracking the gold price almost tick for tick, not sure I will sell even at a close below 1.40, there is support at 1.36, i'm not too alarmed if it stays above that, the market speaks

also gold has recovered the last few hours from a massive dip (DROOY didn't follow) so my TL2 is at 1.36.

[rpccpa]

DROOY, Bottom Line - Accumulating from here in the ranges in below chart...

[David Randolph]

I've sold DROOY at $1.39 as planned, taking a small loss. I'm having some fundamental doubts against my case for being very bullish on gold, and in doubt, stay out !

[Nightbreed]

I'm still in.

It is not only the gold rise but also the management turnaround that made me buy DROOY.

The turnaround is not yet to be seen in the numbers.

i have my finger on the button. if it goes down today it is gone.

gr N

[Nightbreed]

it hit 1,48 and is indead following Gold.

lets see what this baby wil do. My stop loss is at 1,40(its a mental one).

gr N

[Terliso]

I don't think anyone will argue with the fact that DROOY's trend has turned from very bearish to very bullish:

very strong words and it should be.. I'm still holding.. TL2 has broken but not the TL1

[willey]

Hi David,

My two cents...( I'm into gold stocks as an investment & as a trade )

Hold DROOY & hold / accumulate golds such as ABX, GG, GLG, RGLD ( the best one ), CBJ...

Gold has ( for the first time ) broken clear & is rising in the face of a stronger dollar...exceedingly bullish, IMHO...Gold's going to $500+ & soon!  When gold gets to $500, the public will be awakened that something's happening ( by CNBC, etc. ) & they'll jump in to create the final short term mo-mo!  These stocks'll soar & DROOY to at least $2.25 ( probably more in this comin' mo-mo )

my thoughts...

willie

[ScottishTrader]

lets hope so willie

Having a look at the chart action, while it is a shame that DROOY broke the ascending trendline, do you think the candlestick we saw today was a bullish inverted hammer reversal?

We seem to have a short term support level at just below 1.40, so let's hope it holds.  A gap up tomorrow or a strong white marubozu would confirm the reversal pattern, and hopefully get us back on track.  I'm in from 1.50, so I certainly hope so 

And agree with you that DROOY and other gold stocks should keep on marching over the next few months (though I admit I know little about the gold market/gold stocks beyond what I have learned from 3SOF).  I just think it is a shame that David turned bearish on gold so quickly after reiterating his long term bullish sentiment on gold stocks.  Maybe if they prove him wrong, he will come back

Anyway, very interested to find out more about gold stocks/markets from knowledgable traders such as yourself and metro.  Keep up the good work!

the Scotsman