TLS chart, page-195

After giving it some good consideration the other day, I opted to go long just before ex div and take the div. Also bought more yesterday at $3.14. I had a feeling TLS would quickly rebound and the div would be a bonus. We were not going to see the usual ex div weakness. This is because TLS has been so oversold that any kind of weakness is now a chance to get in low and the ex div dip was just that, a huge opportunity. She certainly is in high demand.

But I didn't expect the kind of strength we got today. Don't know what to make of it yet, so this post is just to jot down what I see and point a few things out.

Gap up open, strong rise and then sells off. Didn't even fill the $3.15-$3.16 gap on the way up. Instead, leaves another gap between $3.15-$3.19. Then you get a candle very identical to 2 days ago, open, close and high of $3.22, $3.23, $3.28 respectively.

We want $3.28 taken out soon.

Can also see that TLS has wanted to get back above and close over the 200 DMA line. This is good behavior and very significant. It dipped below the 200 DMA for ex div sake, but as of today, it demonstrated that it does not want to trade below the 200 DMA line any longer. It indicates TLS is building and establishing further strength. The bear market has ended if it continues to trade above.

Just out of curiosity, I have included the trading behavior of WOW as it got out of its bottom in July 2016. It also arrived at the 200 DMA and showed clear signs of wanting to trade above it.

The other thing I noticed recently is when the banks and other stocks are weak, TLS is strong. Indication of some money rotating going on. Take for instance the recent sharp rise in TLS. During those same days, WBC (Wespac) and other banks were doing the opposite and going down sharply (see chart).

I was 1 year too early getting involved with TLS and did sustain some loss. But my original idea of rotating from expensive property to undervalued dividend paying TLS by putting the house on it and having a shot at early retirement may be starting to work here. I have gone heavy with Qty 200,000 and will trade and generally hold TLS for the next few years.

As TLS slowly makes its way out of the pothole however, I sense there might be volatility in TLS come 5G spectrum auction time (adverse outcome of the auction) and during world market events in which case we might get a sharp and sudden dip to $3.03-$3.04 area once more. When this occurs, it will be where $3.00 is tested again and where $3.00 becomes support. If TLS does fall back to low $3.00's in the weeks and months ahead, I think it is to be bought.

Another thought I have is that Penn would want to leave TLS on a good note, so he will now do anything to recover the share price. We have that going for us as well. He comes in when TLS trading in the $6.00's, falls to $2.60 under Penn, he then leaves when TLS is back in The $4.00's or $5.00's. Still a lower price and nothing gained under his leadership but he will want to be seen to have achieved something and at least say that he recovered TLS from $2.60. Not mentioning that TLS is lower than when he came in.