Just a short post on another junior position I initiated this week and my timing was pretty good on this particular stock. On Wednesday 17 July, I bought 5000 shares of ASM @ 0.83.
In two days the stock is up 13%. Silver is on fire right now and has broken out. It could reverse trend just as quick and all gains evaporate. Right now, all volumes seem to be spiking and so far the futures are all pointing higher for another massive day on the markets.
Why pick ASM?
All the silver stocks are displaying strong upside moves and I also looked at FVI, EDR and FR. I believe these can still be bought but again be wary of a trend reversal.
ASM has a 52 week high of $1.60 which would represent almost a double from my buy price. For the last two days the average trading volume has increased 6X. This is a beautiful momentum set up to harvest some nice short term gains.
ASM also announced production results recently and actually produced less silver, gold and copper than they did last year in Q2 2018.
So why is it spiking in price?
They are finally profitable after years of losing money but just barely.
I didn't buy it for it's fundamentals. I bought for it's increased market action on a rising stock price. That's it.
I wrote about that particular strategy here.
I believe along with the rising silver price that the market believes ASM will reach it's 2019 targets.
Right now ASM has broken through it's 200DMA which occurred on the 16th of July.
Short term I really like this stock to reach resistance of $1.15 which is where I'll look to take profits.
This is not for everyone and you could lose all your money doing this. I am gambling in a separate trading account to harvest some capital gains.
That is all.
Read the post below I wrote from August of 2018 for more of the rules I follow.
How to Win at Stock Picking When You're Wrong
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