Re: Twilight
in response to
by
posted on
Aug 16, 2010 11:13PM
Dude, seriously, so what? What's the SMA worth on a gold miner? What is it depicting? The price going down? We know that without looking at the SMA.
Gold's trend is up, yet CMM's trend is down. Why? Because they failed on grade, failed on production, failed on cash costs, and failed at tapping the DB escrow. If you feel that the share price trend reflects a trend in company incompetence, then in that case your SMA is illustrating a trend in company incompetence and you should sell.
If you feel that this is a blip caused by late delivery of low-profile gear, running low-grade muck through the mill at startup, and whatever caused the high cash costs at San Juan, then the SMA is giving you an incorrect signal and you should instead trust the RSI to give you a buy signal on a jump over 50, when incidentally the price could already be back up to 46 cents or so.
All I'm saying is, I'm seeing a price channel, it's a wide one, so I'm going to play it for fat gains until the data indicate that this stock needs to drift to a lower channel than what it's at now. With 2 operating mines, I think it'll take failure to get to that point.
Failure takes 2 quarters to confirm, btw. :-)