Bought 300 VEN.TO @ 8.95, Stop 8.80

Update Oct 20: I raised my stop to 9.10 this moring. It got stopped out 2 minutes before the close for a small profit. Following the covering of my short side play this morning, I sneaked back in to the gold bug camp. In particular, I bought some of my recent favourite gold miner, Ventana Gold Corp. (VEN.TO), a few minutes before the close. Gold held on to the 1330 support as I've discussed this morning (see gold chart in this morning's post). I also watched the closing 30 minutes of the market and VEN.TO respected its 8.90 support level too. See Figure 1. There was a brief touch below 8.90 but it pushed back up quickly (not shown). This is a play inline with the direction of the recent rally. Just riding the trend. Nothing fancy. Hard stop is \$8.80. Mental stop is \$8.88. Maximum risk is (\$8.95 - \$8.80) * 300 = \$45 + \$9.90 commission = \$54.90 = 0.5% of account. There's a risk of another gap down open tomorrow. So my position is small in case the market runs away overnight.

[caption id="" align="aligncenter" width="570" caption="Ventana Gold Corp. (VEN.TO)"][][][/caption]

Posted 19 October 2010 in stocks.

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?

[caption id="" align="aligncenter" width="570" caption="Ventana Gold (VEN.TO) intraday"][][][/caption] [caption id="" align="aligncenter" width="570" caption="Ventana Gold (VEN.TO) daily"][]1[/caption] 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.

[caption id="" align="aligncenter" width="570" caption="Gold"][][][/caption] [caption id="" align="aligncenter" width="570" caption="Ventana Gold Corp (VEN.TO)"][]1[/caption]

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.

[caption id="" align="aligncenter" width="570" caption="Ventana Gold (VEN.TO)"][][][/caption] [caption id="" align="aligncenter" width="570" caption="Gold"][]1[/caption]

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