crazy jim smith on the confirmed bull

Tuesday, January 15, 2008
Minemakers (MAK) - Bull Pattern Confirmed


Minemakers Chart

There are some people out there that swear by charts and say that they are the only way and best way to trade. Yesterday I posted about Minemakers with a chart that suggested that a bullish continuation candle pattern about to be formed.

Today we actually saw a very strong open of 46c and there was expectation that we would see a solid bolt upwards from the start. Not long after the open however we saw the sellers come in and dump as people lost confidence in the market. So for most of the day the prospect of my prediction coming to pass began to look extremely slim, and when Minemakers actually hit the days low of 40.5c, I guess the prediction was looking ridiculous.

A very sudden and late buying surge changed all of that with the share price rocketing up very quickly. Minemakers closed at a new record high of 57c and managed a percentage gain of 32.5% for the day. The MAKO options managed an even better return of 55% with most of the crazyjimsmith.com forum members opting for the higher leverage that the options have provided.

Having said all that, today's long white candle confirmed that bullish continuation candle stick pattern called Mat Hold. Earlier I mentioned how some people swore by charting in identifying investment and trading opportunities.

My above example would no doubt re-enforce that idea that charting is king. Just remember that charts are only a guide and in my opinion should only be used as a guide. The real reason why most of the crazyjimsmith.com forum members piled into Minemakers stock was the Wonorah Rock Phosphate Project in the Northern Territory, with an estimated in ground value of $56 billion.

I almost always look at the fundamental reasons before even beginning to look at the charts. The charts are only a guide and this time they worked.