Thursday, November 5, 2009
Trade Alert: SVM
I am looking for a good opportunity to get into SVM. Yesterday India cotton front of China to buy half of the IMF gold and gold actually responded by moving up.
The stock was recommended by Peter Schiff and trades under six dollars. You almost can't go wrong, but the stochastics are over 80 flattening out and turning over. The 50 day moving average seems to provide good support and I would like to buy it on a bounce off of that. Still it's not stochastics and moving averages that make money from its the price, period.
So without being too careful or too crazy, let's pick up a one half position or 50 shares of SVM right here at $5.69, with a stop at $3.69.
The stop is well out of the way of a market maker and any phony baloney from the financial media and still protects our downside risk.