Friday, June 18, 2010

Email update to subscribers yesterday (DMM.to)

While not my main focus, part of what I do here at NFTRH is highlight interesting opportunities in what I consider to be quality situations. Here's one that went out yesterday along w/ Chart #1. Chart #2 is today's update. Now, of course it does not always go like this here at the letter that makes due without the standard issue guru crystal ball. But all too often things do work out when using patience, a good b/s detector and a little TA.

Chart #s 1 & 2:




Good afternoon,

You may recall a previous update focused on an individual stock as Sabina Gold & Silver (SBB.to, SGSVF) broke out on a weekly chart. The rest as they say, is very bullish history. In fact, while not the subject of today's update I will note that the 'patience' play hit its breaking point and I added starter positions on Tuesday on this former NFTRH holding at USD $1.95. I hope it goes lower to add more, but could not risk being out of the stock any longer. Importantly, I personally have nothing but positive experiences and profits with this stock dating back several years, so my mental framework is supportive of being able to take positions and endure/capitalize on subsequent downside if it happens. Not everybody has that makeup.

On a related topic, I have used this week to sell some non-essentials like GOZ.v (sold out), CPN.to (reduced), in favor of adding to RIO.v yet again along with the SBB.to noted above. I also took profit on a small amount of the XAU.to positions on its news-related upside. For me, it is all about improving the quality and balance of holdings. As to balance, between FRG and XAU, the portfolios were heavily exposed to Long Canyon, a quality asset for sure, but profits needed to be trimmed for the sake of balance so XAU got the call.

On to today's subject: Fledgling gold miner Dynasty Metals (DMM.to, DMMIF) has an interesting chart I want to call to the attention of anyone who may be interested. It is similar to what happened with SBB.to several months ago, only on a daily basis. This has been a tough stock to hold but hold it I have and now I will consider adding to existing positions if a) noted resistance and the SMA 50 are successfully surmounted (see attached chart) and b) if the macro view continues to support adding to positions. I am currently well stocked on gold exploration and mining companies (incl. DMM) so I am not in a vulnerable position as a would-be buyer.

The chart is for your review to do with as you will. If the above noted resistance is dealt with positively, MACD goes Zero+ and RSI holds support, the stock could be in business for a while.

Regards,

Gary