Sunday 21April2013 - The Trend Is Your Friend!
For those who think they can outsmart the market and in particular the junior resource stock market with its huge percentage swings where fortunes are made and lost, all I can say is Good Luck! As Jim Dines has repeated many hundreds of times "The Trend Is Your Friend."
So it is Very Important to be "On The Right Side of the Market."
Right now most junior resource stock gamblers have lost their shirts. Well actually most only have their socks still on. Every thing higher up has evaporated into thin air.
There will come a time when once again it will really pay Bigtime to BUY back into the junior resource sector including the precious metals in particular. But for NOW do NOT try to catch a falling 500 pound Safe. It's much heavier than you and will take you right down to the Bottom with it.
The chart below may help you get on the Right Side Of The Market. Wait until the technical signals are in your favour. A key indicator will be when downtrend lines break to the upside and the 20 Week Moving Average breaks Above the 40 Week Moving Average.
There is nothing wrong with being on the "Right Side Of The Market" and only making 100 to 200% on your trade over a couple of years. For me at least this makes more sense than trying to pick the bottom and that one stock out of 2000 that goes up 50 times. That's my 5 cents worth.
Click to Enlarge.
Don't know if this web link for the above chart works but will try to embed it in this post so that if interested you can view the updated chart on a regular basis.
http://stockcharts.com/h-sc/ui?s=$CDNX&p=W&yr=15&mn=0&dy=0&id=p45086283605&a=289939986&listNum=22
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