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Truth is timeless: “Markets never change” – Jesse Livermore, 1923 The early masters, Livermore, Wyckoff and Loeb isolated themselves from the crowd and crowd thinking. None of them ever graduated high-school and yet they each became legends in the market. Their techniques have been time-tested.... More
  • Randgold: After The Close 0 comments
    Mar 5, 2014 4:21 PM | about stocks: GOLD

    The table insert below shows the performance of the top five (market cap) gold miners for the day. Included in the list is Randgold Resources Limited (NASDAQ:GOLD).

    Senior Table

    Source: TeleChart

    Randgold is the clear leader for the day with a solid gain of 3.79%.

    Since our initial entry point of 60.94, at the pivot on 1/10/14, GOLD has gained over 38%.

    As mentioned in a previous post, as GOLD moves higher (past the 82 level), the overhead resistance may start to decrease.

    This is because (unlike all of the senior miners), GOLD is close to its all time high at 127.27 The other big miners are far away from making new highs.

    Why is this so important?

    If GOLD breaks above 127, and the bull move is still on, there is no more resistance. After 127, the next resistance level is unknown.

    Our plan is to follow Gerald M. Loeb's method for positioning in GOLD and to continue to take the short-term indications (entry points) as they present themselves.

    There is no guarantee of a breakout and the chart my dictate an exit of the position at some point. However, until it does, we plan to take low-risk opportunities on the way up.

    This technique is called "pyramiding" and is completely opposite of "averaging".

    When we say "low-risk", we are talking about pennies-per-share. The distance from the entry to the stop if we are wrong. Our position size is dictated by how much we will lose if wrong.

    If we can get to pennies-per-share risk, then we can take on a larger size.

    Of course, those that are reading these updates are responsible for their own accounts.

    The next area that may present an opportunity is in the 86 - 92 zone. At this point, our plan is to monitor price action for another signal.

    In our opinion, once (and if) the 92.50 level is breached, price action volatility may increase as overhead resistance may start to decrease rapidly.

    So, we want to be fully positioned (have our complete line) if possible, prior to that time.

    As always, the chart will be the final arbiter.

    We are moving our stop to 75.50.

    Disclosure: I am long GOLD.

    Stocks: GOLD
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