Friday, October 8, 2010

MON- Monsanto- Is it ready for a big run? Is it turning around?

MON- MONSANTO- Is it a good buy? Highly respected, and hated at the same time, Monsanto chemicals stock has fallen significantly over last many months from a high above $140. The stock has one rebound over last few months. Then it dropped again. Over last 3/4 days, it has two strong REVERSE (BUY) Signals. This is also a higher bottom. Seems like a nice trading opportunity with stoploss at 46.50. For investors, looks like a game of 6 dollars loss vs $ 50 profit potential. Good buy with a stoploss at $43.

Thursday, October 7, 2010

Gold, GLD- Are the golden days over for Gold today? Pro

Gold, GLD- Are the golden days over for Gold today? Probably yes.

The Gold ETF- GLD- is showing a strong trend reversal today. It is a text book (Profit From Prices) style U-TURN signal today. This signal occurs after a sustained bull run. Today volume is also very high.
If you are curious to learn my favorite Trend Reversal signal U TURN (SELL) signal, please click here.

Once can go short with stoploss at today's high prices. Target price is around 108 (until the stoploss is triggered)

Update: October 19, 2010.
As per Profit From Prices, when a chart is in a strong run, the first strong Trend Reversal signal is sometimes not sufficient but if another strong trend reversal signal happens within few days, it should be taken as a good confirmation for trend reversal.
The same has happned in GLD today. It opened with a downward Gap. (Wish yesterday, GLD had made a new High, I would have FREE FALL (Sell) signal)). Today's price movement is strong and if volume is also abnormally high, this should add confidence for trading gold/GLD short.

 Important: However good somethings appears, one should always protect trading positions with Stoploss.