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Paul Mosgovoy
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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
  • DUST: Review And Go-Forward Plan 2 comments
    Jun 5, 2014 4:16 PM | about stocks: DUST

    After the close, we can see that the Direxion Daily Gold Miner Bear 3X ETF (NYSEARCA:DUST) pulled away from the session low of 27.20.

    The chart shows that the trend-line that was identified in this earlier post appears to be in-effect at this point.

    (click to enlarge)DUST Daily

    Chart by TeleChart

    Today's attempt at increasing the position size was a small effort.

    A small effort means that today's initial entries and exits were only 5.5% of the overall position size.

    This is what Gerald M. Loeb called pyramiding. Livermore and Wyckoff also discussed the technique.

    As the price continued to erode, a decision was made to exit not only the losing position but to take profit on the position that was established at 25.27 on 5/16/14.

    Both of these positions taken as a whole represented 27.3% of the total position size.

    That would mean that on a hypothetical position size of 1,000 shares, we sold 273 today........ Not much and a major chunk of the position remains.

    Since the "1,300% line" appears to be in-effect and has been contacted three times (and not breached) in the past 16-trading days, this line is our exit line.

    A decisive penetration of this line would mean that the entire position is exited.

    Disclosure: I am long DUST.

    Stocks: DUST
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Comments (2)
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  • Rubenov
    , contributor
    Comments (467) | Send Message
    Paul, you got some good entry points and profits on DUST, but you know the large annualized return from last year was an anomaly, alongside gold's worst year in over 3 decades.


    Such things are not likely to repeat back-to-back. Otherwise, your blog posts have been very informative, thanks.
    5 Jun 2014, 07:07 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (120) | Send Message
    Author’s reply » Thanks,


    I respect that assessment of things.


    I certainly am not looking to maintain a position for a year that is trending at 1,300%. A month or two should be good enough.


    At the same time, we essentially have confirmation of a deflationary environment with the announcement of negative interest rates.


    If gold is supposed to go up during can it still go up during deflation?


    Just a thought.


    Thank you for responding to my posts.


    5 Jun 2014, 09:42 PM Reply Like
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