weekend charting , page-61

Hi Robbbbbb,

Could you kindly revisit MGX and BPT? I hope you do not mind a few questions here:

1. What do you make of Breakpoints' view that the US will have another drop once it reaches around the SPX 1050 level. From their chart, it appears that EW is predicting a huge drop. Do you share this view, if not, where is your pull back target?

2. Do you see significant pull back in Sept - being a traditionally "bad' month?

3. With regard to MGX - do you see 1.30 as significant resistance level? We have pulled back at least twice and the market depth > more sellers than buyers. Do you use market depth as basis for entry a trade. In other word, would you be deterred when other technicals are showing Oversold?

4. Coming to your view regarding exit strategy - I have this problem with MGX - I could have sold off at 1.20 (twice and enter again) but I have held on becuase of my lower view of the SPX. How do you put a target price to exit for MGX if you are trading this share?

I hope you do not mind these questions. To avoid boring the rest of the people - please if you have time - drop me a note @[email protected].

Also, I have been following your thread on LGL - good call and a brave one given the way the chart was going. That's was what I meant - when do you know it is time to enter into LGL given that gold is not able to make significant upside since Jan. I built positions in LGL in Dec up to Feb - was too silly not to sell out before the right issue. Eventually sold at a substantial lower profit. Again it is the exit strategy that dumb founded me.


Cheers

JK5