NCM (ASX) 2 types of SHORTS

Originally posted by Orwell ↑

I went leveraged long today. Can't remember when I last traded this stock. Struggling to overcome my fundamental view that it's a dog stock in a a dog commodity. The gold trade was for the GFC, not the recovery. But technically the weekly chart looks terrific and i got a long entry. Had to close eyes and just buy it.

Trying to understand why the money's flowing to it. Appreciate Sydneyguys analysis and thoughts on improving price in AUD terms. That's one aspect worth backing. Also a commentator on TV this morning thought the Dow drop last night was like a margin call from all the govt's and sovereign wealth funds underwritten by oil being forced to cash in investments to raise capital. Interesting thought. It suggests lots of risks in the world along with the various distortions from currency wars. Maybe gold is attractive after all

.I don't really know though. Just the chart says loudly it's going up, so I'm long. Interesting times.

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The downtrend in NCM ended back in mid-December, and I reference my post in this thread above when I went long. I trade weekly charts and so it takes time to confirm a new uptrend and we're not at that point yet, as often a stock will consolidate sideways at the end of a long downtrend, but so far the stock is playing out as expected and the upward move should continue. I believe we are in a Wave 1 for those who understand Elliott Wave, which is the first move of a new cycle.

Of course it can fail and so you need to trade on the price action as it unfolds. However all is looking good and I'm expecting to hold my Call options for another month at least. I have no idea why gold is moving up, just observing that the money is flowing to this sector now and where the money goes I go. Other goldies have jumped more than NCM but this is the biggest so it should catchup and ultimately attract more of the fund managers money as they buy into the recovery story. With more people back from holidays next week and new positions being entered for the year we'll hopefully get more funds pushing into this sector.

I'm holding and letting this run. No need to second guess the market and jump out early.