Peanut's Potent Plethora of Profit

[peanuts]

So far, so good:

[peanuts]

Silver and Gold are both showing nice moves higher, but silver is outpacing gold. The ratio is down to 65.38 from 69.62, where I first offered the trade idea. The 150 week MA is now 61.51 which, if used as the trigger to turn off the trade, would yield a 11.65% return. Currently the gain on the position of short Gold, long Silver is 6.09%.



Let's assign a rounded date of when the precious metal bull market began at January 4, 2000:

price of gold: $282.05
price of silver: $5.3025
gold:silver price ratio: 53.19

If that ratio is met again, and you entered the trade at the ratio of 69.62, then you would have unrealized profit of 23.60%. But, the time for this to happen is most likely more than twice as long as the time it would take to reach 11.65% return.

[skiracer]

Silver and Gold are both showing nice moves higher, but silver is outpacing gold. The ratio is down to 65.38 from 69.62, where I first offered the trade idea. The 150 week MA is now 61.51 which, if used as the trigger to turn off the trade, would yield a 11.65% return. Currently the gain on the position of short Gold, long Silver is 6.09%.



Let's assign a rounded date of when the precious metal bull market began at January 4, 2000:

price of gold: $282.05
price of silver: $5.3025
gold:silver price ratio: 53.19

If that ratio is met again, and you entered the trade at the ratio of 69.62, then you would have unrealized profit of 23.60%. But, the time for this to happen is most likely more than twice as long as the time it would take to reach 11.65% return.

Peanuts,
I like your approach and the way you are looking at their relationship to one another. pretty neat.

[peanuts]

Peanuts,
I like your approach and the way you are looking at their relationship to one another. pretty neat.

The best part about it is that it strips out the actual positive or negative price move of the commodity. The only thing that you are concerned with is the price relationship and having it meet a certain ratio value. I'm sure that it could be done with another commodity pairing that shows good historical data correlation... oil:gold, oil:gas, sugar:silver, or oil:wheat perhaps. As long as you can find a historical relationship and a current imbalance, you should be able to continue to make these trades in any kind of market. The influences of currency valuations is largely stripped out.

Here's a link to the current GOLD:SILVER chart: LINK

[peanuts]

...Here's a link to the current GOLD:SILVER chart: LINK

Trade is turned off. The 150 week moving average of the ratio was met at 61.96... Total gain from the trade +11% in a few weeks. Not HUGE, but not too shabby

[njdevil]

Chart Interpretation

Peanuts,
I am new to chart reading and would like some help in interpretating the attached chart. I currently own gold via the tocqueville gold fund.

http://stockcharts.com/h-sc/ui?s=$bpgdm

The charts current RSI is 86.79, but the MACD has not crosssed over. So, is it assumed to hold this fund until the MACD crosses over ? Please advise.
Thanks,
NJDEVIL

[peanuts]

Peanuts,
I am new to chart reading and would like some help in interpretating the attached chart. I currently own gold via the tocqueville gold fund.

http://stockcharts.com/h-sc/ui?s=$bpgdm

The charts current RSI is 86.79, but the MACD has not crosssed over. So, is it assumed to hold this fund until the MACD crosses over ? Please advise.
Thanks,
NJDEVIL

It seems like your main concern would be price of the commodity if you owned gold, not the chart that you linked to.

If you're new to charting, then first determine what settings you like to use every time that you look at stock charts. Always keep the settings the same so the saved settings display everything in a frame of reference for which you are accustomed.

According to the way that I look at the charts for gold, I would not be a seller here.

[peanuts]

Marcellus Shale Gas Wells

I live in the heart of the Marcellus Shale natural gas play. My neighbors are getting rich. Energy companies are striking huge deals with landowners for leases. Even Reliance of India is buying up leases. There is so much lease grabbing going on that the energy companies cannot drill wells fast enough. They buy the leases and then can't develop the lease because they are busy elsewhere. There is a backlog of drilling.

Besides the landowners, I can think of a few other beneficiaries of all of this action. And, I personally know of one company that is headquartered right in the center of this entire shale play. And, they are not necessarily a major energy company, but instead are highly competent WELL SERVICE PROVIDERS.

Many of these wells that have been drilled, and are going to be drilled, are done by a company called SUPERIOR WELL SERVICES They are a publicly traded company. The ticker is SWSI

This is a lifetime opportunity that I am giving you, folks. Buy this stock and hang on. It is majority owned by the Snyder family. Good ole Chuck and Elmer Snyder started his resource business a long time ago. Click here for some info on them. This company has a history of success and is in the right place, at the right time, with the right gear, and the right people, and the right financial backers, and the right experience.

Forget charts or past fundamentals... they won't help you to see how much value is in this company.

5, 10, 15, 30 years from now, I hope that you remember me

And, in full disclosure, I'm long and will continue to add to my position.

[riverbabe]

Love those "lifetime opportunity" stocks, especially coming from an all-round good guy and trustworthy expert trader in this area. Peanuts, thank you thank you. I'm going in. River

[skiracer]

I live in the heart of the Marcellus Shale natural gas play. My neighbors are getting rich. Energy companies are striking huge deals with landowners for leases. Even Reliance of India is buying up leases. There is so much lease grabbing going on that the energy companies cannot drill wells fast enough. They buy the leases and then can't develop the lease because they are busy elsewhere. There is a backlog of drilling.

Besides the landowners, I can think of a few other beneficiaries of all of this action. And, I personally know of one company that is headquartered right in the center of this entire shale play. And, they are not necessarily a major energy company, but instead are highly competent WELL SERVICE PROVIDERS.

Many of these wells that have been drilled, and are going to be drilled, are done by a company called SUPERIOR WELL SERVICES They are a publicly traded company. The ticker is SWSI

This is a lifetime opportunity that I am giving you, folks. Buy this stock and hang on. It is majority owned by the Snyder family. Good ole Chuck and Elmer Snyder started his resource business a long time ago. Click here for some info on them. This company has a history of success and is in the right place, at the right time, with the right gear, and the right people, and the right financial backers, and the right experience.

Forget charts or past fundamentals... they won't help you to see how much value is in this company.

5, 10, 15, 30 years from now, I hope that you remember me

And, in full disclosure, I'm long and will continue to add to my position.

the other day when you entered swsi in the potw i took a look at its charts and i liked the weekly but it seems to have stalled out. ZAKS has it rated a #5 and is on it's "Strong Sell" list.

[riverbabe]

the other day when you entered swsi in the potw i took a look at its charts and i liked the weekly but it seems to have stalled out. ZAKS has it rated a #5 and is on it's "Strong Sell" list.

Honey, he's talking L-L-O-N-G-G-G-G term. (Sweet Pea, please forgive me for interpreting what you are saying.) And he's backing it up with what he sees on the ground! Right there in middle America! And he's talking about fine Pennsylvania people, as honest as the day is long and as hard-working! And it was the generations of folks from Pennsylvania that I grew up among. Outside of Pennsylvania. The Amish and Mennonites from Pennsylvania helped settle the area of Canada I grew up in, alongside my German ancestors. Heck, we're talking "Snyder" aka Schneider! Heck, my cousin Julie married a "Snider." I KNOW them too!

He's not saying look at the charts now. He's saying this is an OPPORTUNITY for the very LONG run. Well heck, I don't have to tell you what he's saying. If anyone is an expert in this area, it's Peanuts. Heck he has grown up in this industry and in steel and coal. I'll shut up now, but I back him just like I back Ernie in his picks even if his timing is not ideal. And look how well he is doing! And just as much as I back you (always and forever). So, wait for the exactly right time in the markets and see if fifty cents really matters a whole lot 5-10 years from now. He's just sayin' "it is what it is, take advantage before the stock really takes off, because that's what I'm seein' is going to happen." But you know that. And you're a brilliantly intelligent and insightful and skilled and persuasive and wow(!) trader and...lucky guy!

(heh) River

[skiracer]

Honey, he's talking L-L-O-N-G-G-G-G term. (Sweet Pea, please forgive me for interpreting what you are saying.) And he's backing it up with what he sees on the ground! Right there in middle America! And he's talking about fine Pennsylvania people, as honest as the day is long and as hard-working! And it was the generations of folks from Pennsylvania that I grew up among. Outside of Pennsylvania. The Amish and Mennonites from Pennsylvania helped settle the area of Canada I grew up in, alongside my German ancestors. Heck, we're talking "Snyder" aka Schneider! Heck, my cousin Julie married a "Snider." I KNOW them too!

He's not saying look at the charts now. He's saying this is an OPPORTUNITY for the very LONG run. Well heck, I don't have to tell you what he's saying. If anyone is an expert in this area, it's Peanuts. Heck he has grown up in this industry and in steel and coal. I'll shut up now, but I back him just like I back Ernie in his picks even if his timing is not ideal. And look how well he is doing! And just as much as I back you (always and forever). So, wait for the exactly right time in the markets and see if fifty cents really matters a whole lot 5-10 years from now. He's just sayin' "it is what it is, take advantage before the stock really takes off, because that's what I'm seein' is going to happen." But you know that. And you're a brilliantly intelligent and insightful and skilled and persuasive and wow(!) trader and...lucky guy!

(heh) River

that was somewhat longwinded ther river. you should buy it if you feel that way about it.

[peanuts]

Riverbabe gave a good summation as to why I feel SWSI is a stock to own, and also about the entry price of it.

This is not a short term trading opportunity. This is sharing information about a company that in my opinion is set to see enormous growth over the next decade and beyond. With this long term perspective, quibbling over a few cents per share seems pointless. In my opinion, this is one of those companies that you build a position through dollar cost averaging.

I own this stock personally and also hold it in another portfolio which I manage. Unless something drastically changes with the company, I will continue to add to the position as funds permit. In many years to come, I expect to be handsomely rewarded for today's investment.

[billyjoe]

Looking at a long term chart of SWSI a conservative estimate would give you at least 25. Unless this is a scam (not), pump and dump (not), get rich quick (not), tech or real estate bubble (not) ,ponzi scheme (not), or government subsidized dry hole (not). It looks good. I think I'll start buying in. Thanks, Peanuts, always good info from you.

------------billy

[billyjoe]

and ,yes, Peanuts, I've been to Indiana , Pennsylvania. I regret not looking around more to see Jimmy Stewart's birthplace or his father's hardware store.

---------------billy