1 2

How The Best Traders Respond To Financial Crisis

March 19, 2020
Chris Vermeulen
TheTechnicalTraders.com

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

HOW THE BEST TRADERS RESPOND TO FINANCIAL CRISIS

 

 

 

                   Stock Warrants - If Not Now, When? GET STARTED NOW

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Have We Seen The Peak In The VIX?

March 08, 2020
Chris Vermeulen
TheTechnicalTraders.com

"...The recent price breakdown in the US stock market (near the end of February 2020) prompted a very big spike in the VIX – could we see another HUGE spike with a deeper price selloff in the near future?..."


Note from Dudley - These Guys Are Good:

Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

 

HAVE WE SEEN THE PEAK IN THE VIX?

 

 

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Gold And Silver Rally Back After FED Emergency Rate Cut

March 06, 2020
Chris Vermeulen
TheTechnicalTraders.com

 

"...Over the past few weeks and months, our research team has continued to sing the praises of precious metals – particularly Gold and Silver.  After last week’s dramatic selloff in precious metals (attributed mostly to margin call sales), both Gold and Silver rallied almost 3% on Tuesday, March 3 – the day the US Fed issued an emergency 0.50% rate cut.

We believe this move by the US Fed solidified a fear in the global markets that the central banks are preparing for a much broader economic contraction and attempting to front-run weakness by moving price rates lower.  This will help to ease capital restrictions, liquidity across global markets and spur some global borrowing at a time when the Coronavirus may continue to weigh on global economies.  Still, for skilled metals traders, this is likely the rocket fuel we need to see Gold rally above $1800 very quickly and for Silver to rally above $21 quickly as well...."

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

GOLD AND SILVER RALLY BACK AFTER FED EMERGENCY RATE CUT

 

 

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

TLT (Bonds) Trade Of The Year, And What Is Next?

March 07, 2020
Chris Vermeulen
TheTechnicalTraders.com

"...We just closed out our TLT position, which opened up 20.07% from our entry price, amazing. Who said bonds are dull and boring? haha 

Only three times since 2008 have I seen bonds rally more than 20% from a new swing trade entry. Each time the move was short-lived, and the price collapsed after it within a few weeks. My goal is not to try and time tops and bottoms for the best entry and exit level. That is a gambler/losing strategy. Sure it pays big if you luck out and nail the timing, but they are few and far between, and the losses from trying will eat up any previous gain...." 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

TLT TRADE OF THE YEAR AND WHAT IS NEXT!

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

STOCK MARKET & FLU BREAKDOWN METRICS – WHERE’S THE BOTTOM?

March 3, 2020
Chris Vermeulen
TheTechnicalTraders.com

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

"...It is time for skilled traders and investors to come to the realization that a Deflationary Recession is very likely given the scale and scope of the Corona Virus spread.  Although the numbers pale in comparison to the common Flu/Cold, the economic implications are far more severe.  As the virus spreads into the Middle East, Europe and Africa (think Belt Road Initiative) and early signs that it has already spread into parts of South America, one has to begin to wonder if this event could be something similar to Plague or Pandemic events of the past?..."

STOCK MARKET & FLU BREAKDOWN METRICS – WHERE’S THE BOTTOM?

 

 

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Silver Prepares For Next Leg Higher


January 30, 2020
Chris Vermeulen
TheTechnicalTraders.com

 

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

"...Our researchers believe Silver is currently undervalued, compared to Gold, by at least 240%.  Historically, the Gold to Silver ratio averages a 10+ year rotational range of between 63 to 67.  This means that through both peaks and troughs, ranging from the high 80s to mid-90s to the low 30s to mid-40s, on average the middle price range level for this ratio is near 65.  Currently, this Gold to Silver ratio is 88.4..."

SILVER PREPARES FOR NEXT LEG HIGHER

 

 

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

The Platinum Breakout & Bull Market Of 2020

January 27, 2020
Chris Vermeulen
TheTechnicalTraders.com

 

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

THE PLATINUM BREAKOUT & BULL MARKET OF 2020

 

 

 

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Metals & Miners Prepare For An Early 2020 Liftoff


December 30, 2019
Chris Vermeulen
TheTechnicalTraders.com

 

 

Note from Dudley - These Guys Are Good:
Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.

Stock & ETF Trading Signals

METALS & MINERS PREPARE FOR AN EARLY 2020 LIFTOFF

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

Don't overlook the power and leverage and the opportunities using stock warrants on your favorite companies.

 

 

Jeff Baker
Senior Analyst – Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Gold and Silver Prepare For A Momentum Rally

Today we warn of a potential downside price rotation in precious metals that may last 3~5+ weeks as metals set up for a massive breakout rally which we believe will start in late April or early May. Our custom indicators are suggesting that precious metals, and the general US stock markets, may be setting up for a bit of a reprieve rotation after a very impressive recovery. Be patient as we believe this pullback in prices will provide an excellent buying opportunity for the eventual momentum rally setting up in about 30+ days.

Let’s start by looking at our Custom Market Volatility indicators.  The Weekly chart below highlights the recent recovery in the US stock market since the December 24th, 2018 lows and also shows that the current recovery level is sitting right at a 61.8% Fibonacci level.  It is our belief that a period of general price weakness will begin to unfold over the next 10~15+ days in the US stock market.  This rotation is very healthy for the next leg higher – the momentum rally we have been suggesting will take place in the near future.

We believe the downside rotation in the US stock market will be the result of renewed calm from expectations that the global economy may begin a recovery process as the US/China trade issues and other geopolitical issues seem to become more resolved.  We believe the recent upside move in the US stock markets were a flight to safety for many foreign investors fearing that US/China trade issues would result in very harsh outcomes near March 1.  If the trade issues appear to be close to a resolution, this flight to safety trade may wane a bit over the next 10~20+ days as emerging markets may see a dramatic upside bounce in valuations.

 

How does this relate to Gold and Silver?  It is very likely that the upside pricing pressure in precious metals will stall a bit as the global equities markets take center stage.  If our analysis is correct, the developed markets will contract while the emerging markets take focus.  This falls right into line with our analysis that the US stock markets will pause/rotate over the next 10~20+ days in preparation for a larger upside price swing.

Our custom Gold/Silver Index is showing that precious metals are trading in a sideways Pennant/Flag formation near levels that have historically been resistance.  We still believe the upside in the precious metals market over the long term is substantial, yet we believe the news of a US/China trade resolution and the resulting rally in the emerging markets will remove much of the upside pricing pressure in the precious metals markets for about 15+ days before momentum support is found.

 

Our researchers believe the timing of this move is right for a short term swing trade.  Be prepared for rotation in nearly all the global markets and be prepared for emerging markets to see an upside price rally as a result of positive news from the US and China over the next 2+ weeks.

Are you ready for these moves?  Do you value the research we share with you and the insight we provide?  Please take a minute to visit www.TheTechnicalTraders.com to learn how we can help you find and execute better trades.  Support our work – become a member.  We dedicate our efforts to providing you with more detailed and intuitive market research available anywhere else.  Isn’t it time you invested in a team that can really help you make 2019 a great success?

JUST LOOK AT OUR MOST RECENT TRADES THIS MONTH!

JOIN OUR GROUP OF TRADERS TODAY AND PROFIT!
CLICK HERE

How to trade with warrants | Futures Magazine

Editors Note:
This is a re-visit of an old, yet timeless, article on stock warrants. Nothing has changed with warrants and the opportunities are endless as we now have warrants trading in all industries and sectors including resources, marijuana/cannabis, pharmaceuticals, biotechnology, etc., some with expiration dates of 5 years or more.

My contact info which was on Futures Magazine in the original article has changed, but otherwise, all is correct.

Read the entire article on Futures Magazine or below:

Many traders are familiar with call options and have spent many years and study hours learning strategies to employ them in the markets. Warrants, however, are still a little known and little-understood investment vehicle, even after 80 years of availability. In 1949, Sidney Fried wrote “The Speculative Merits of Common Stock Warrants.” In it, he captures the profit potential of these instruments.
He states:

“Common stock warrants turn in the most spectacular performance of any group of securities…. The speculative potentialities of common stock warrants are enormous…. With potential profits and potential losses so great it is a source of wonder that so little understanding of the nature of common stock warrants exists not only among the investing public who might be forgiven this sin, but even among the many professionals of the business upon whom the public depends for information and guidance.”
Sidney Fried’s observation in 1949 remains relevant today. Most investors and analysts do not take the time to understand the potential leverage — and the consequences — that warrants can bring to a portfolio.

Here, we’ll take a closer look at warrants from the trader’s perspective, compare them to call options and discuss when call options or warrants would be the most appropriate investment vehicle to accomplish a particular objective.

WARRANTS VS. OPTIONS
A warrant is a security issued by a company giving the holder the right, but not the obligation, to acquire the underlying company’s shares at a specific price. That right expires on a specific date in the future. Generally, warrants are issued in connection with a stock or a bond offering. Frequently, they are done so in the context of an “equity kicker” or “sweetener.” The reason a company will issue a warrant is simple; think of it as additional incentive to get the deal done.

There is an obvious similarity to call options. The two instruments are closely related. The major difference is that a call option is created in the marketplace by investors and not issued by a company. Typically, options trade on designated options exchanges, such as the Chicago Board Options Exchange. Warrants will trade on a traditional stock exchange, such as the New York Stock Exchange or the Toronto Stock Exchange, just like their common shares.

Warrants first came about in the 1920s. At one time, even AT&T had warrants trading, as well as some of the big company names of the past and present: Tenneco, Avco, Holiday Inn, International Tel & Tel, Lowes, General Tire & Rubber, Mack Trucks and many more.

Fast forward to today, and you will discover that many warrants are issued on the shares of natural resource companies, an area in which many traders have a special interest because of the commodity boom. Many companies that offer warrants trading are involved in the extraction and processing of gold, silver, oil and gas, uranium, coal, zinc and copper.

To name a few, you will find Goldcorp, Kinross and Silver Wheaton with warrants trading, as well as call options.

TRADER OBJECTIVE
The first step in warrant trading is selecting the right underlying company. This is of utmost importance because if the company does not execute on its business plan and the common shares do not rise, holders of either call options or warrants will not make money. Each investor must perform his or her own due diligence on companies that are attractive for investment.

The next consideration is time horizon. Once a viable company is selected, the decision to purchase a warrant or a call option will depend on the timeframe of the trader’s goals. While traditional call options generally have a life of between 30 days and one year, warrants often are issued with five years or more until expiration. Thus, short-term traders may see more opportunity in call options, while longer-term investors may be more comfortable with the several years until expiration that warrants provide. This additional time can be a great asset in the volatile markets we have experienced over the last two years.
Whether the investor is considering call options or warrants, the underlying reason is basically the same: increased leverage. Both warrants and options offer additional leverage over purchasing a stock outright. Of course, as with all forms of leverage, the leverage afforded by warrants cuts both ways.

When it comes to warrants, traders can expect to achieve at least a two-to-one leverage over purchasing the common shares; this is reasonable with most of the warrants currently trading. What this means is if you believe the common shares will rise 100%, then the warrants have the potential to increase by at least 200%.

WARRANT EXAMPLE
One stock that has attracted a lot of attention in the mining sector is Agnico-Eagle Mines. Focused on gold, with operations in Canada, Finland and Mexico — and additional development activities in the United States — Agnico-Eagle Mines benefits from significant international exposure. Its LaRonde Mine in Quebec is Canada’s largest operating gold mine, measured by reserves. Not surprisingly, the company’s stock has risen significantly along with the price of gold, and its warrants have been similarly popular.

The company trades under the symbol AEM on the NYSE, as well as the TSX. For several years, AEM had a long-term warrant trading, but it was overlooked by most investors and analysts. The warrant traded under the symbol AEMLW in the OTC market.

To see how the leverage of this particular warrant can amplify returns, go back to 2006-07. Each warrant entitled the owner to purchase one share of Agnico-Eagle common stock at $19 until Nov. 14, 2007. By then, the warrant had been trading for several years.

From the stock’s low on June 13, 2006, to the close on Oct. 12, 2007, it rose from $26.02 to $54.68, a rise of 110%. The warrant rose from $10.86 to $35.75, for an increase of 329%, providing the warrant trader with three-to-one leverage over owning the common stock. Investors privy to the warrants trading on Agnico-Eagle made an incredible gain on these warrants in a rather short period of time. Of course, if an investor had purchased call options during this period of time, they also would have made a significant profit.

A few other examples of warrants with great leverage returns in the last few years are Kimber Resources (6.1-to-1 leverage), Peru Copper (10.4-to-1 leverage) and Blue Pearl Mining (2.8-to-1 leverage).
Sometimes, it’s argued that warrants have a dilutive affect on the company’s capital structure and that investors should avoid them. From an accounting standpoint, the warrant is already issued. It is already trading on the market, and its effects are already in place. Interested investors are only taking advantage (if they desire to do so) of the leverage opportunities that the warrant furnishes.

In addition to speculative opportunities, warrants also provide hedging benefits. When combined with both put and call options, warrants also can be used to construct some rather interesting, sophisticated and potentially profitable trading strategies.

About the Author

Dudley Pierce Baker is the Guadalajara/Ajijic, Mexico-based founder and editor of Junior Mining News and Common Stock Warrants, (formerly Precious Metals Warrants). His e-mail address is support@commonstockwarrants.com