YeOldGoldNugget's Blog Spot: Venture Exchange

Thursday, October 1, 2009

The Midas Touch

By 79Atoms on Thursday, October 01, 2009

Most people will know what is meant by this when hearing this particular saying. Now when we use it in our day to day lives it's always a reference to someone who no matter which path he or she takes their actions will always turn out profitable to them and their immediate surroundings.

Other people will know it from the myth in which an ancient king called Midas wished for the ability to turn everything he touched into gold. So it was said and so it was done, Midas apparently overjoyed by his new-found ability wanted to celebrate this by throwing a big feast for himself. Little did he know then that gold is not on the list of easiest things to digest for our fragile digestive tract for when he wanted to feast himself on all the food laying before his eyes, everything he tried to bring to his mouth had already turned to gold.

In Hawthorne's version he even changed his own daughter into a golden statue. Needless to say King Midas came to regard his once so desired ability as a serious burden. To try to rid himself of this burden he prayed to Dionysus and begged to be rid of this curse or wither away and die from starvation. Dionysus heard his prayers and told Midas to wash his hands in the river Pactolus. Midas washed his hands and with that his power away...after doing so the river sands turned to gold and is I suppose as good as any explanation as to why this river was so rich in gold ;-)

So, turns out for Midas he didn't choose too wisely and let his emotions run wild instead of thinking about the consequences his wish could entail. Would most of us really fare any better when faced with a similar situation in which we are granted one wish to be whatever one can think of. I doubt it.

What Midas was aware of however, like so many before him and after him was that

Gold is the most precious of precious metals

I'm not sure if they already knew back then just how precious precious really is?

How precious...I'll leave that story for a later time. Now, with just a couple minutes left before the Venture Exchange opens and me being struck down with an already manifesting cold I'm going to make myself a nice warm beverage and I will be back later for the round up of the day.

Good luck for today.

YeOldGoldNugget's links of interest

Saturday, September 12, 2009

Orko Silver Chart September 11, 2009

By 79Atoms on Saturday, September 12, 2009

Daily Chart

Chart is courtesy of marketclub.
Marketclub - Orko Silver Corp. Trend Analysis.

Yeah, I was too lazy to do a chart yesterday. So go sue me :-)

Saturdays just give me a bit more time and since the Toronto and the Venture Exchange are closed in the weekend we all have to wait until they open again. And since I'm no Forex trader that at-least means that weekends are still trading free.

On to the chart of the day,..I've decided to include some points of interest.

To continue with where I left of and as to why I consider Orko Silver's chart so bullish. You're looking at a daily chart with a 2 year time frame.
If you look at October 2007 till early may 2008 you will notice that there rests a considerable support at 1.40
I think this 1.40 will be important again in the -hopefully- not all too distant future. I'm just referencing this here now so one can already try to learn and remember some key-points this stock has known and will encounter again.

Also if you look at the chart you will see I have placed some markers highlighting the 200 Moving Average. Basically, a 200 Moving Average to investors means mostly just two things. Is the stock trading above the 200 Moving Average?

Yes) If this is the answer then the stock is considered to be in an uptrend and the market is accumulating and buying more shares than its selling.

No) If this is the answer then the stock is considered to be in a downtrend and the market is selling more than it is buying.

Now, knowing this, take a look at the chart and look at where we are now. That needs no further explanation I think.

Also, I have to correct an error in my earlier posting where I might have given the presumption that 0.90 is a next resistance to break. That is not what I meant, I meant that 0.90 is just a fictitious mental barrier the stock has to break,...in minds of investors I mean.
Resistance wise the 0.90 means absolutely NOTHING, the earlier spike to 0.90 was merely a failed attempt to get to 1.00 again and thus should not be seen as a resistance or barrier to cross.
The 1.00 mark however is!

In these bullish and up times and with this chart I'm guessing that the 1.00 will be more looked at as a support than it will be as a resistance to break. So that means that from where we are now at 0.87 and up to 1.00 there really is no clearly definable point to look at which could make or break the attempt to get to 1.00

What I mean is, the stock should have absolutely no problem getting over 1.00. Investors won't be looking at any specific points between where we are now and up to 1.00 to decide on whether to sell. So to me as a researcher that means that the chances of people selling their shares now are together with the supporting and up-trending 200 MA indicator getting considerably slim.
That is also the emotional part I'm addressing here which plays a part in where we go from here and how fast we will get there.

Together with this supporting issue for the stock comes also another one.

These will be amongst the last days that one will have the opportunity to buy Orko Silver Corp. this cheaply cause once we break 1.00 this for one will act as a very very strong bottom and once past 1.00 we are quickly looking at the important 1.40 mark.

For next week, the basics have not changed, we're still very much in an uptrend, a slight pullback (RSI >70) is still in the cards and when that happens don't be that stupid to just sell your shares cheaply.

Stay true and prosper!