Sentiment
in response to
by
posted on
Nov 24, 2010 07:31PM
New Discovery Resulting in a 20KM Mineralized Gold Belt
I like to post the "trading Rules" from Tyler Bollhorn (Stockscores) from time to time, I find them very helpful as I struggle to stay my course.
#6 has struck a cord with me this week, not that I feel I am "married" to GNH but rather that there have been a couple signals that I am conveniently 'ignoring'.
6. Stop Falling in Love
The more you know about a company, the more likely you are to ignore the market's message. Companies want you to own their stock; the more investors that they get to own their stock, the higher the price goes. As a result, there is a bias to the information that you are exposed to, if you listen too much you may miss activity in the market that is telling you that something is wrong.
The TA suggests everything is fine, as long as we hold .46 support, this is still a consolidation phase that is within the healthy 50% retracement level. However, I am a little uncomfortable with the volume (below both the 20 day avg and 150 day avg volume) the lack of volatility and the bearish closings.
It is unnerving to see such a bullish day overall for many of the juniors today, yet GNH looked anemic, and the sentiment here is getting darker by the day, all I can contribute is keep that risk tollerance in check, remember why you are here and have an exit strategy in place should this go against you. It feels like crunch time to me...but I am still on board.
Good luck all
GS40