We are buying Direxion Daily Gold Miners Bull 3X Shares (NUGT) at the market on April 17, 2012 as our Gold Stock Indicator was triggered just before the close on April 16, 2012.
As we’ve mentioned in the past, we are only seeking gains of +7.5% in NUGT. Our involvement in NUGT is highly speculative and only for short-term gains/losses.
We are selling Direxion Daily Gold Miners Bull 3X Shares (NUGT) after achieving the goal of +7.5%.
On April 11, 2012, we will be selling our holdings of California Water Services (CWT) and use the proceeds to purchase Gold Fields (GFI).
Today our Gold Stock Indicator fell to a level which has yielded at least 7.5% gains in NUGT more than 85% of the time. We have bought NUGT and NEM at the market and will update this information after the close of the market today.
Today we will be SELLING shares in the following holdings Avon (AVP), American National Insurance (ANAT) and Tootsie Roll (TR) at approximately 2:30pm EST.
We’re offsetting the gains from Avon (AVP) and American National Insurance (ANAT) with the losses of Tootsie Roll (TR). It should be noted that the losses of Tootsie Roll are significantly larger than the gains from AVP and ANAT. However, acknowledging our losses and taking reasonable action in a timely manner is a must. Additionally, we are taking the opportunity to exit out of undesirable investments and building cash holdings as we recommended in our October 15, 2011 posting.
On Tuesday, March 27, 2012, the New Low Observer team will sell the principal associated with our investment in Reinsurance Group of America (RGA). Below is a chart of our transactions of RGA to date.
We first bought RGA at $59.39 on February 3, 2011. As the price of RGA increased +6% we sold the principal portion of RGA on May 2, 2011 and let the profits run. It was just our luck that the price we sold at was the third highest closing price for all of 2011.
After the fallout of the market decline from July 2011, we repurchased additional shares of RGA on September 27, 2011. After rising +23.30% since September 27, 2011, we will sell the principal portion of our investment in RGA.
The selling of RGA at this time is in keeping with our October 15, 2011 Dow Theory analysis recommending that the bull market rally that has materialized would be a great time to take profits. This also explains why we have so many positions that are in the 1% range of our portfolio composition, we’ve sold the principal while letting the profits run.