USE TIGERSOFT
TO LOOK BENEATH A STOCK's SURFACE
or
PUT YOUR INVESTMENT CAPITAL at BIG RISK.
2/24/2011 (C) 2010 William Schmidt, Ph.D. www.tigersoft.com
WALL STREET PROFESSIONAL USUALLY KNOW FIRST!
WATCH
THEM WITH TIGERSOFT CHARTS'
"PROFESSONALS' CLOSING POWER"
It's just not a good idea to buy a stock solely or simply because it
has rising earnings.
Earnings are often manipulated and anticipated by insiders who are
privy to more information
than the investing public. Earnings are also subject to trend
changes for a lot of reasons that
insiders know long before the public. Companies just don't like
to talk about coming bad news.
But that doesn't stop a company's insiders and the Wall Street
Professionals that follow a
stock closely from selling their shares to the unsuspecting Public when
it is to their advantage.
This happens over and over. Reading our website will give you a
better sense of how
often and what you can do about it.
Take the
case of gold miner Newmont Mining (NEM). Since September 2010, Gold
has risen from 124 to 137, about 10%. If you had correctly
guessed Gold would rise, it
might have seemed a good idea to buy the world's second biggest
producer of gold, NEM.
After all, you might say, surely the rising prices of Gold will
outpace any production costs'
increase and the stock will surely rise. WRONG. NEM
fell from 65 to 55, a 15% loss.
HOW TIGERSOFT CAN HELP YOU:
3 POINTERS
Looking beneath
the surace, as only TigerSoft can do, would have helped an investor greatly.
We teach the lessons of more than 30 years' professional software
development in the stock
market and puting on education seminars for regular stock
investors:
1) Know that false price
breakouts are DANGEROUS like NEM made
when it rose
only briefly above 63 to a new all-time high and then fell back.
.
Read ... Tiger Blog - FALSE
BREAKOUTS: How to Recognize Them and Profit
and
Spot A False Breakout
before It Fails
2) MOST IMPPORTANT - Always watch our invention, the trend of the blue
Tiger Professional Closing Power. CP broke its uptrend about the same time that NEM made
a false breakout. This shows that Professionals had changed their mind about the stock.
Our website here and our software have made this invention into a
key tenet in what we
teach, See the Blog we wrote about this Closing Power trend-break and the new appearance
of Insider
Selliing in the stock back at this
time. .
See October 11, 2010 What Happens When
Gold Mining Stocks Get out of Step with Gold Prices.
3) Tiger's own Accumulaion Index showed red distribution, rather than the blue TigerSoft
Accumulation that normally preceeds a bullish advance.
4) Buy the highest
Tiger Power-Ranked Stocks.
Many other stocks showed much more bullish Insider Buying and Net
Professional Buying
at this time.
For example, CAT (Caterpillar) rose more than 25% to its high 3 months
later. See
its recommendation here on 10/15/2010.
Or CMG (Chiptole Mexican Grill,) which we
re-recommended here on 10/15/2010
when it was $182. it hit $260 a week ago. We first
recommended it below $50 at the end of 2008.
What Gold Stock Should I Buy?
See
October 11, 2010
Tiger's
Measurement of tnsider Buying Distinguishes The Best and Worst Gold Stocks in Advance.
October 6, 2009 GOLD's
Breakout Past 1000/ounce into All-Time High Territory Invites Comparisons with 1970s.
There were also lots of Gold and Silver stocks that looked better than NEM
back in October 2010.
See if you can spot the insider buying and rising Professional Closing
Power in the stocks
below. The conclusion is pretty clear. It was not a good stock
to buy just any
well-know Gold Stock just because Gold prices have been rising and
probably wopuld
continue to rise.... TigerSoft teaches to look beneath the surface of the
stock's trading and see
what insiders and Wall Street professionals are doing. Always
note when there is a
change in the Professional Closing Power trend from up to down.
It means Professionals
have become net sellers.
AXU |
WHY DID NEM FALL SO HARD TODAY?
We can only guess the real reasons. Production costs at NEM are rising
steeply,
on a perentage basis,
probably faster than the price of gold. In
all of 2010, it cost NEM $260 to
produce
an
ounce of gold that they marketed for $1150/ounce. In
the last quarter of 2011, it
cost
more than $500 which they sold for $1366/ounce. In addition, they warned that their
Batu
Hijau Indonesian mine would bring them less revenue, due to the Indonesian
government's decision to
penalize them for past pattern of massive pollution.
See 2/14/2008 Tiger Blog
Newmont's Gold
Mining Brings Protests All over the World:
Widespread
Environmental Degradation and Health Hazards:
...Indonesia
will terminate NEM's copper mine.