Yet Another Winner!?!
The Dynamic Wealth Report
October 28, 2009
by Justin Bennett, Editor
Last week I came down with a slight case of the flu. I don’t get
sick very
often and luckily this case was short lived. But nonetheless, the
boss man sent me home to recuperate (read: not get everybody else in the
office sick).
In my downtime, between hours of sleeping and watching Star Wars for the
100th time, I got to looking at some charts.
You see, I love looking at charts. I actually take my work home with me
all the time. Whenever I have a few minutes of downtime, I’ll go through
some charts. I’m always on the lookout for low risk trading
opportunities.
I also did a little follow up on a trading opportunity I told you about
in a recent issue. It was from three weeks ago when we went over the
aspects of a technical setup called a triangle. In case you missed it,
that article was titled “Grab Explosive Gains With This Chart Pattern”.
Let’s do a quick recap for those of you who missed it.
-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?
Our own small-company specialist, Robert Morris, has found a
way to 'sniff out' tiny penny stocks on the verge of a major breakout. And
the timing for this has never been better.
You see, the system takes advantage of an obscure SEC regulation that
sends penny stock prices through the roof.
We've seen some stocks gain 852%... 5,450%... even 17,496% in no time
flat.
Click here
for the details...
-----------------------------------
A triangle is a technical setup that’s sometimes seen before a big move
in a stock. By looking for these patterns, you can position yourself to
catch explosive shifts in buying and selling activity. If you get in on
the right side of the trade, you can pull in some hefty profits.
The particular opportunity I told you about was in the DB Commodities
Tracking Index Fund (DBC). DBC was just about to break out of a triangle
when I mentioned it on October 7th.
Let’s take a look at where DBC is trading now…
As you can see, DBC worked out exactly as planned. We got the upside
break out of the triangle pattern. The entry for this trade, as I
stated, was a break above $22.75. If you got in this trade at the
correct entry price,
you’re sitting on a nice winner.
In the October 7th article, I also stated the $24 area was an area of
resistance, which would be a good area to take profits. DBC has broken
through the $24 resistance zone and is now pulling back to it. If you
took profits on the move through $24, congratulations! Not bad for a
couple weeks work!
If you’re still holding DBC, I would move your stop loss to breakeven,
as this pattern has had its expected outcome. Never let a winning trade
turn into a loser.
But DBC may have room to run…
If recent trends continue, commodities such as oil, gold, wheat, and
corn (which DBC holds), may continue to run.
Oil is trading around $78 this morning, which is up around 14% from just
a couple weeks ago. Gold is still trading above $1,000 an ounce, with
lots of room for further upside. Wheat and corn are just coming off
multi-year lows. They’ll be in high demand due to an ever growing
population.
With DBC, you’re getting in on all of these trends at once.
Remember, the golden rule of trading goes like this: “Cut your losers
quickly, and let your profits run.”
This is a perfect example of making our money work for us. By doing a
bit of homework and finding a low risk entry point, we were able to
capture a profitable trade in less than three weeks.
Don’t you love the markets?
• Cocoa (Just under $3,400 a ton)
Cocoa prices are at 30-year highs. What’s causing the record prices? Poor harvests from the Ivory Coast, which produces just over 40% of
global supply. Some analysts expect the cocoa market to be undersupplied
for years to come.
Print
Page
Bookmark Us
Home | Whitelist Us |
Terms of Use |
Privacy Policy |
Contact Us | Security |
Site Map