Sold 400 VEN.TO @ 10.70, Breakeven

I’m out all my Ventana Gold (VEN.TO) position. This thing is losing steam despite gold prices hitting record high seemingly on a daily basis. VEN.TO made another attempt to break $11.00 resistance level at the open but it quickly reversed (Figure 1). I upped my stop order at the open on this third attempt because I don’t want to be holding it if it fails for the third time.

I’ll just sit and wait for a while to see how this one goes. Recent low at $10.40 is the support to watch. Coincidentally, the 50 daily MA just crossed over the 200 MA today for a classic bullish signal (Fig. 2). A contrarian correction (downward) to bleed off overbought condition is in play, perhaps?

Ventana Gold (VEN.TO) intraday

Ventana Gold (VEN.TO) daily

Loss is ($10.70 – $10.70) * 400 = $0 – $14.85 commission = -$14.85 = 0.15% of account. I am just handing money over to my discount broker Questrade these days.

Sold 350 VEN.TO @ 10.50 (Profit +0.8%), Re-Bought 250 VEN.TO @ 10.67

My Ventana Gold Corp (VEN.TO) stop got filled yesterday afternoon as gold price took a dive (Figure 1) before the Bank of England minute today. However, the support at 10.50 look very promising as VEN.TO made a couple of successful long tail test of that level in the last 24 hours (Fig. 2). Seeing that the BoE has blatantly admitted to support the bandwagon on more quantitative easing (along with the FED), the bullishness in gold is written on the wall. As such, I am re-entering my VEN.TO position this morning with a smaller amount of shares.

New stop is a close of VEN.TO below 10.50. Volatility is expected to be high. So I am giving it some intraday leeway to move. A hard stop is set at 10.20. Risk is thus ($10.67 – $10.20) * 250 = $117.50 + $9.90 commission = $127.40 = 1.3% of account.

For the record, previous entries were at 9.74 and 10.85. My stop at 10.50 was too tight.

I am admittedly being quite aggressive here. Let’s wait and see if it pays off.

Gold

Ventana Gold Corp (VEN.TO)

Bought 150 VEN.TO @ 10.85

I added more shares to my Ventana Gold (VEN.TO) long position. I’m now holding 350 shares with an average cost of $10.22 per share. I also moved my stop order to breakeven at $10.22 for the entire position.

The reason for this trade is simple. I am adding to my winner. It’s by far my favourite trading strategy.

Ventana Gold (VEN.TO)

Gold

Bought 200 VEN.TO @ $9.74, Stop $8.90

Well I found a viable long term hold just as I declared that there’s nothing good out there today. Yes, I eat my words often. So I took a long position in Ventana Gold Corp (VEN.TO). That cup-and-handle breakout from $9.00 is just textbook (Fig. 1). I am indeed a bit late, but the trend is now upward.

There is a big resistance at $10. It is where the June epic decline started. From just above $10 to $6.5 between June and July. Now that VEN is back at this level again. I am betting that the positive momentum would carry it upward.

My hard stop is $8.90. My mental stop is $9.50. As VEN seem to like to gap at $9.50. From the look of it, $9.50 level is more important than $10. Since we’re above it already, this gives me a bit more confidence in this trade.

Another point to note is gold price. It is on a direct train to test, and possibly, break a new high record (Fig. 2).

Risk is ($9.74 – $8.90) * 200 = $168 + $9.90 commission = $177.90 = 1.85% of RRSP trading account.

Ventana Gold Corp. (VEN.TO)

Gold

Sold 3 PAA.TO 10DEC Puts 25.00 @ $2.25, Mark $24.62, Loss 0.3%

Pan America Silver Corp. (PAA.TO) is making another run to test the short term high. Seeing that the volume is relatively higher on this test of $24.80 resistance (Figure 1) and that I have lowered my mental stop to $24.30, I have ditched this short position at a small loss at 10 am today. I am mostly in cash again. I still have a small bullish position in Kinross Gold. I’ll just be letting it run its course.

I have no idea which way the market is going at this 1080 junction on the S&P. There are some important supports just below. I will keep my hands off until the market decides which way it will go.

Pan America Silver Corp. (PAA.TO)

Loss is ($2.27 – $2.25) * 3 * 100 = $6 + $25.90 commission = $31.90 = 0.3%