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What the Mining Industry can Learn from the Boston Red Sox

 | MARCH 11, 2019 | NO COMMENTS

The mining industry can learn a lot from the Boston Red Sox. I just learned that lesson at PDAC 2019, the greatest mining show on Earth. More than 25,000 people attended in Toronto to meet, mingle, learn, look at core, party, buy, sell and schmooze.

I’ve been attending the mining show annually since 1992. I’ve missed two years. Before I go I have a list of goals that I want to achieve. Overall, it was a very good year at the show as I ticked off all the items on my to-do list and as always found a few more.

Wandering the booths and hallways and seminars, one of the things I learned was that there is a dearth of good projects under development. Simply put, we are consuming metals and not replacing them, causing analysts to believe the world will be in a deficit position over the next few years. This 2015 infographic from the Visual Capitalist makes the case for the coming copper crunch or you can read it in The Mining Journal.

Similar alarms are being sounded for silver and gold. The shortages in the battery metals (nickel, manganese, lithium, graphite and of course perennial bridesmaid cobalt) are obvious as the world decentralizes grid electricity.

Refined zinc metal output is expected be 13.81 million tonnes in 2019. The problem is, the output estimate for 2019 is lagging behind the expected metal usage of 13.88 million tonnes for the year.

We are consuming the metals faster than the mining companies can replace them.

How does this relate to Boston Red Sox, winners of last year’s World Series?

The Bosox over many years invested heavily in scouts to find a larger pool of young possible players, signed players at a young age, developed them patiently through the system, and brought them to the major leagues at the appropriate time. Not downplaying Steve Pearce’s World Series, the most important players on Boston’s championship run throughout the season and the playoffs were homegrown, like Mookie Betts, J.D Martinez, and Jackie Bradley Jr., Xander Bogarts was signed when he was 16 years old and made major contributions to the team’s success.

The cost of finding and developing young talent is far less than the cost of trying to acquire that talent once developed. Look at Bryce Harper’s USD$330 million contract with the Phillies after spending the first 7 years of his professional career in Washington. In Year 1 of that Washington contract, Harper was paid a total of $3 million and had a tremendous year, earning a spot in the All-Star game and winning NL Rookie of the Year. His 7 years in Washington were very cost-effective for the team and the returns he provided. Once developed, he priced himself out of the Washington budget.

There’s also Mannie Machado who in 2012 was paid $112,786 by the Baltimore Orioles. Drafted and developed by Baltimore, Machado provided Baltimore with gaudy numbers and strong defence. For you data geeks, his Wins Above Replacement (WAR) is 5.7. He was a bargain for what he contributed to the team. He just signed a 10-year, USD$300 million contract with the San Diego Padres, priced out of Baltimore’s budget.

Finding, drafting and developing your own players allows a team to control costs, keep these players under contract for a (relatively) low cost for an extended period of time, provides some degree of economic stability for the team, and de-risks the overall organization.

And that is one of the things that’s missing in the mining industry. There are few large projects in development to replace the copper, gold, copper, nickel, tin, silver, and battery metals that are needed. The majors have failed to invest in their minor league systems, leading them to have to effect risky M&A transactions to replace lost ounces.

This failure to invest in development started in about 2013, after the mining industry blew up following an acquisition spree. You remember Kinross’ 2010 free agent acquisition of Red Back Mining to acquire ownership of Tausita Gold Mine in Maruitania? Kinross paid $7.1 billion for an asset that was written down by $3.2 billion in 2013, crushing Kinross’ share price with it. There are other examples as well, but this write-down was massive and caught the market’s eye. Fear crept into the market and brought an end to M&A activity.

Following the fear came severe cost-cutting. The majors dramatically scaled back in all areas of operations, including not investing in the intermediates and juniors. If the juniors aren’t being funded they can’t explore (scout), the number of development opportunities shrinks, which reduces the number of opportunities for the intermediates to shepherd good projects along. And that decreases the odds that a major deposit would be found. And that of course means that fewer deposits are making it to the Major Leagues.

The cost of acquiring already-developed properties is extremely expensive. Grabbing proven ounces is what is driving the current $17.8 billion attempted takeover of Newmount Mining by Barrick Gold. It’s like the Phillies acquiring Bryce Harper for $330M after he was cheaply developed by Washington.

The Bosox are 6/1 favourites to win the World Series again, due mainly to the core of highly talented home-grown inexpensive players. It would be cheaper for the majors in the mining industry to invest more broadly in the juniors, knowing there will be winners and losers along the way, than to continue relying upon free-agent signings.


Peter Clausi

EDITOR: 

Mr. Clausi is an experienced investment banker, executive and director. A graduate of Osgoode Hall Law School called to Ontario's bar in 1990, Mr. Clausi ... <READ MORE ABOUT PETER CLAUSI>

Part II – What Commodities and Transportation Are Telling Us

 

 

 

In Part I of this report we talked about and showed you what commodities and transports where doing in relation to each other. Here in Part II, we show you in detail what we expect to take place.

This final chart highlights our Custom Smart Cash Index (in BLUE) as well as the CBOE Commodity Index pricing levels (in RED).  This data goes all the way back to 2012 and highlights a number of key pricing rotations.  First, we can see that Commodities have been decreasing in total value from 2012 till mid-2017.  We can also identify a key support level that was established in the Commodities Index near the beginning of 2016 – coinciding just a month or so before the bottom in the Smart Cash Index.

We believe this Key Bottom in both the Commodities Index and the Smart Cash Index reflect a dramatic pricing shift that took place at that point in time.  Although Commodities have yet to rally beyond upper high ranges, we can see the Smart Cash Index rallied to incredible new all-time highs.  The rally that started near the end of 2016 in the Smart Cash Index was likely the result of a “Capital Shift” that we have discussed extensively in the past.  With commodity prices staying historically low and an increase in economic optimism, capital shifted away from “commodity-based sectors” and into “technology and biotech sectors”.  Now, it appears this rally has run its course and a new capital shift is taking place.

Until Commodities begin to break out of the downward price channels we’ve highlighted on this last chart, global capital will be searching for two primary objectives; safety and hedged returns.  By this, we mean to say that global capital and investment will be seeking out strong Blue Chip and Mid-Cap performers that can produce safety in growth, dividends and hedge against currency swings or further eroding commodity price levels.  Think of this as a move to “key elements supporting the global economies”.

Heavy equipment, support services, and retailers, tool suppliers, and mid-level equipment suppliers, transportation services for these items and the repair parts and services to keep these tools running efficiently.  Human services, labor, labor services, medical services, and entertainment services are likely to do well over the next 12~24 months.  In an economy where commodity prices are relatively low and Transportation and Capital is flowing quite well, one could easily identify that Capital will seek out and identify the strongest opportunity for safety and growth as sectors continue to shift.  After a massive rally in Technology and Bio-Tech, we believe a continued shift towards Blue Chips and Mid-Caps is taking place right now.  Technology and Bio-Tech will likely find some support in the near future and become “opportunistic investments” eventually.  But right now, we believe global investors are focusing on different targets to hedge the risks that are associated with certain technology stocks.

In closing, our research highlights that Commodities are not increasing as one would expect in an expanding global market/economy.  We believe this is one core factor that will continue to drive a “capital shift” toward opportunity and performance in the Blue Chips and Mid-Caps.  Global investors will re-enter the Technology and Biotech sectors when pricing levels become more opportunistic – at some point in the future.  This means we have a very strong likelihood of the US and global Blue Chips, Banks, Industrial Supply, Basic Materials and Human Services (Entertainment, basic human essentials, regional human services, and utilities) will continue to perform well.

The US and the global economy is growing, just not as one would expect in a “total growth” environment.  We believe the global economy has shifted to support “fundamental growth elements” that are related more closely to the types of industry and market sectors that support the fundamental growth components.  We’ve discussed our theory that the global economies operate in a “growth or protection mode” many times before.  We believe the current global economic stance is more in tune with  “moderate growth while still being overly protective”.  Watch Commodities and the Transportation Index for signs of when the global economy enters a larger growth phase and when more opportunity for a broader capital shift will take place.

This concludes this two-part series and how we identify market opportunities for us to trade. Analysis like this has allowed us to generate substantial profits in the past 30 days with UGAZ 30%, NIO 21.6%, ROKU 18%, GDXJ 10.5%.

If you want to learn how we can help you find success throughout this shifting market and throughout 2019 and beyond, then visit www.TheTechnicalTraders.com

Chris Vermeulen
Technical Traders Ltd.

Stock Warrants | Wikipedia

Stock warrants are defined on Wikipedia, https://en.wikipedia.org/wiki/Warrant_(finance):

"In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed price called exercise price until the expiry date. Warrants and options are similar in that the two contractual financial instruments allow the holder special rights to buy securities."

Common Stock Warrants provides a database of stock warrants trading in the United States and Canada in all industries and sectors. The service has been in existence since May 2005 and was initially named, PreciousMetalsWarrants.com. In 2013, services were expanded and the name was changed to CommonStockWarrants.com.

CommonStockWarrants provides:
A Database of all trading warrants in the U.S. and Canada
A Listing of all trading warrants

Ownership of CommonStockWarrants is the sole property and responsibility of Dudley Pierce Baker.

Articles on stock warrants by Dudley Pierce Baker have appeared on many websites, including Kitco. 321Gold, Goldseek, TheMorganReport, 24HourGold, TalkMarkets, SeekingAlpha and many more.

Videos and interviews have been done with BNN, FuturesMagazine, ResourceWorld, EllisMartinReports, KorelinEconomicReports, PalisadeRadio, TheGoldReport, TheFinancialSurvivalNetwork, JayTaylor and others.

Books - In 2017, "The Stock Warrant Handbook, Your Personal Guide To Stock Warrants" was written by Dudley Pierce Baker and is a useful research tool to all investors:

Chapter Titles:
What is a Warrant?
Background and History of Warrants
Why You Should Consider Warrants
A Warrant On What?
Market Timing
Portfolio Allocation
Private Placements vs. Trading Warrants
How I Determine Current Values
Are You A U.S. or Canadian Investor?
Brokerage Firms
How to Place Your Trades

The Stock Warrant HandBook, Your Personal Guide to Trading Stock Warrants is available free to visitors of http://CommonStockWarrants.com and is also available on Amazon.com.

Excerpts from Wikipedia, the free encyclopedia:

Warrants are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends. They can be used to enhance the yield of the bond and make them more attractive to potential buyers. Warrants can also be used in private equitydeals. Frequently, these warrants are detachable and can be sold independently of the bond or stock.

In the case of warrants issued with preferred stocks, stockholders may need to detach and sell the warrant before they can receive dividend payments. Thus, it is sometimes beneficial to detach and sell a warrant as soon as possible so the investor can earn dividends.

Warrants are actively traded in some financial markets such as German Stock Exchange (Deutsche Börse) and Hong Kong.[1] In Hong Kong Stock Exchange, warrants accounted for 11.7% of the turnover in the first quarter of 2009, just second to the callable bull/bear contract.[2]

Structure and features

Warrants have similar characteristics to that of other equity derivatives, such as options, for instance:

  • Exercising: A warrant is exercised when the holder informs the issuer their intention to purchase the shares underlying the warrant.

The warrant parameters, such as exercise price, are fixed shortly after the issue of the bond. With warrants, it is important to consider the following main characteristics:

  • Premium: A warrant's "premium" represents how much extra you have to pay for your shares when buying them through the warrant as compared to buying them in the regular way.
  • Gearing (leverage): A warrant's "gearing" is the way to ascertain how much more exposure you have to the underlying shares using the warrant as compared to the exposure you would have if you buy shares through the market.
  • Expiration Date: This is the date the warrant expires. If you plan on exercising the warrant, you must do so before the expiration date. The more time remaining until expiry, the more time for the underlying security to appreciate, which, in turn, will increase the price of the warrant (unless it depreciates). Therefore, the expiry date is the date on which the right to exercise ceases to exist.
  • Restrictions on exercise: Like options, there are different exercise types associated with warrants such as American style (holder can exercise anytime before expiration) or European style (holder can only exercise on expiration date).[3]

Warrants are longer-dated options and are generally traded over-the-counter.

Secondary market

Sometimes the issuer will try to establish a market for the warrant and to register it with a listed exchange. In this case, the price can be obtained from a stockbroker. But often, warrants are privately held or not registered, which makes their prices less obvious. On the NYSE, warrants can be easily tracked by adding a "w" after the company's ticker symbol to check the warrant's price. Unregistered warrant transactions can still be facilitated between accredited parties and in fact, several secondary markets have been formed to provide liquidity for these investments.

Comparison with call options

Warrants are very similar to call options. For instance, many warrants confer the same rights as equity options and warrants often can be traded in secondary markets like options. However, there also are several key differences between warrants and equity options:

  • Warrants are issued by private parties, typically the corporation on which a warrant is based, rather than a public options exchange.
  • Warrants issued by the company itself are dilutive. When the warrant issued by the company is exercised, the company issues new shares of stock, so the number of outstanding shares increases. When a call option is exercised, the owner of the call option receives an existing share from an assigned call writer (except in the case of employee stock options, where new shares are created and issued by the company upon exercise). Unlike common stock shares outstanding, warrants do not have voting rights.
  • Warrants are considered over the counter instruments and thus are usually only traded by financial institutions with the capacity to settle and clear these types of transactions.
  • A warrant's lifetime is measured in years (as long as 15 years), while options are typically measured in months. Even LEAPS (long-term equity anticipation securities), the longest stock options available, tend to expire in two or three years. Upon expiration, the warrants are worthless unless the price of the common stock is greater than the exercise price.
  • Warrants are not standardized like exchange-listed options. While investors can write stock options on the ASX (or CBOE), they are not permitted to do so with ASX-listed warrants, since only companies can issue warrants and, while each option contract is over 1000 underlying ordinary shares (100 on CBOE), the number of warrants that must be exercised by the holder to buy the underlying asset depends on the conversion ratio set out in the offer documentation for the warrant issue.

Pricing

There are various methods (models) of evaluation available to value warrants theoretically, including the Black-Scholes evaluation model. However, it is important to have some understanding of the various influences on warrant prices. The market value of a warrant can be divided into two components:

  • Intrinsic value: This is simply the difference between the exercise (strike) price and the underlying stock price. Warrants are also referred to as in-the-money or out-of-the-money, depending on where the current asset price is in relation to the warrant's exercise price. Thus, for instance, for call warrants, if the stock price is below the strike price, the warrant has no intrinsic value (only time value—to be explained shortly). If the stock price is above the strike, the warrant has intrinsic value and is said to be in-the-money.
  • Time value: Time value can be considered as the value of the continuing exposure to the movement in the underlying security that the warrant provides. Time value declines as the expiry of the warrant gets closer. This erosion of time value is called time decay. It is not constant, but increases rapidly towards expiry. A warrant's time value is affected by the following factors:
    • Time to expiry: The longer the time to expiry, the greater the time value of the warrant. This is because the price of the underlying asset has a greater probability of moving in-the-money which makes the warrant more valuable.
    • Volatility: The more volatile the underlying instrument, the higher the price of the warrant will be (as the warrant is more likely to end up in-the-money).
    • Dividends: To include the factor of receiving dividends depends on if the holder of the warrant is permitted to receive dividends from the underlying asset.
    • Interest rates: An increase in interest rates will lead to more expensive call warrants and cheaper put warrants. The level of interest rates reflects the opportunity cost of capital.

Uses

Warrants can be used for Portfolio protection: Put warrants allow the owner to protect the value of the owner's portfolio against falls in the market or in particular shares.

Risks

There are certain risks involved in trading warrants—including time decay. Time decay: "Time value" diminishes as time goes by—the rate of decay increases the closer to the date of expiration.

References

External links

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!
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Has Gold Reached Upside Resistance Near $1340 – $1360?

Our research has indicated that precious metals should be setting up for a period of rotation and sideways trading over the next 20~30 days.  We issued a research post on January 28, 2019 warning that precious metals would be consolidated over a 30~45 day period before setting up for a massive upside price move, here.  This research was based on our Adaptive Dynamic Learning price modeling system and from our Adaptive Learning Cycles system.  We believe this research is still very valid and want to alert metals traders that resistance in GOLD can be easily identified near $1340-1360.

The Weekly gold chart, below, highlights the resistance channel that originates in 2016 and continues with multiple peaks in 2017, 2018 and now.  We believe this resistance will act as a price ceiling over the next few weeks before metals prices attempt an upside breakout as we suggested in our January 28 research post.

Pay attention to the Fibonacci downside projected price targets near $1270~1295.  These levels are very likely to be retested if the current resistance level holds.  In other words, gold prices rotate back to below $1300 on moderate price rotation over the next 30 days before attempting to break resistance and move higher.  Be prepared for a potential “washout high” price pattern setting up early this week.

We are still actively seeking a deeper price rotation/retracement in Gold/Silver before we initiate any new trades.  We believe the upside pricing pressure has reached a level that will prompt a move back to below $1300 on healthy price rotation.  If we are wrong, we will know soon enough.  If we are right, then the momentum rally setup that will occur near or below $1300 will be a great trading opportunity for all investors.  Follow our research to stay informed of this future price movement.

We believe 2019 and 2020 will be incredible years for skilled traders and we are executing at the highest level we can to assist our members.  In fact, we are about to launch our newest technology solution to better assist our members in creating future success.  Visit www.TheTechnicalTraders.com to learn more.

Chris Vermeulen
Technical Traders Ltd.
www.TheTechnicalTraders.com

Definition Of A Stock Warrant

Several years ago in New York at a Hard Assets Investment Conference, a newsletter writer with over 30 years in the business, asked me, “Dudley, what is a stock warrant?”

After regaining my composure, I responded just like I am addressing you, by defining a warrant and why you should be interested.

By definition, a warrant is a security, issued by a company, giving the holder the right, but not the obligation, to acquire the underlying shares, at a specific price and expiring on a specific date in the future.

This definition is very similar to stock options or LEAPS, (Long-Term Equity Anticipation Securities) except that warrants are actually issued by a company, whereas options and LEAPS are created/written by investors.

Warrants are traditionally issued in connection with a company’s private placement or equity offering as additional incentive to get the deal done.

Warrants are mostly a matter of common sense and arithmetic, so let’s not make this complicated.

Stock warrants can be issued by companies for as little as 1 year or for 5 years or more.

Obviously, the longer the term of the warrant (time until expiration) the better your chances of great success.

However, just because a stock warrant has a 5 year life does not mean that you must hold the warrant for 5 years. With trading warrants you can buy the warrants one day and sell them the next day.

Exercising a warrant should never be one of your considerations, as it makes no sense to me.

Exercising a warrant means you (or your brokerage firm) sends the warrant certificate to the company along with the exercise price of the warrants and you then receive the common shares deposited into your account. If the warrants are trading you will have accomplished nothing other than paying a higher price for the shares.

When you want to sell the warrants just sell. If you continue to like the common shares, then just buy the common shares after you sell your warrants. You will be dollars ahead with much less paperwork.

If you would like more information on stock warrants visit my website.

Dudley Pierce Baker
Editor – Founder
http://CommonStockWarrants.com

The History Of Stock Warrants

Warrants have literally been available for investors for many decades but yet are very under appreciated and overlooked by most investors.

As far back as the 1920s many large companies have had stock warrants trading, AT&T, Goldcorp, Bank of America, General Motors, Ford Motors and Agnico-Eagle Mines, among hundreds and hundreds of others.

My extensive knowledge of warrants goes back to the 1970’s and my fascination with the writings of Sidney Fried and The R.H.M. Warrant Survey, a hard copy newsletter and a popular financial newsletter during the 1950s, 60s and 70s. (Fried, 1949) Sidney Fried passed away in 1991 at the age of 72 and to the best of my knowledge, his service stopped in the late 1970s or early 1980s around the time that options began to trade on the CBOE.

Sidney Fried’s first book, ‘The Speculative Merits of Common Stock Warrants’ (1949) is a rare and timeless educational tool for warrants and is the core of knowledge used by me in my service. Since 2005 I have used this cumulative knowledge of warrants which I learned from the ‘master’ to educate and assist investors around the world and I have collected all of the writings of Sidney Fried. Even though these works are old, the information is timeless and only the examples used are out of date.

One quote from Sidney Fried which I have used many times at investment conferences is very appropriate here:

“With potential profits and losses so great it 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.”

In the very popular and highly recommended book, “The Coming Collapse of the Dollar and How to Profit from It” by James Turk and John Rubino, they discuss options and LEAPS as a possible avenue for investing in the mining stocks. They did not discuss our third possibility, warrants, which I feel is more “investor friendly”. Why?  Because of the all-important element of TIME.  How many times have your options expired worthless but yet within a few months or so your stock goes up; you just ran out of TIME?

If you would like more information on stock warrants visit my website.

Dudley Pierce Baker
Editor – Founder
http://CommonStockWarrants.com

Our May Tech Stock Market Prediction – Part II

 

 

If you missed PART 1 (SP500 Price Forecast) be sure to read it here.

Here is PART II let’s take a look at the NQ Weekly chart with the ADL predictive price modeling.

We are going to include predictions made by our Adaptive Dynamic Learning (ADL) price modeling system that originated from December 2017 going all the way forward through to the end of May 2019.

At this point, we are going to highlight our earlier predictions (all of 2018 and into Q1/Q2 of 2019) and show you what the market has done since these calls were made back in September 2018.  Pay attention to this weekly chart and pay attention to the YELLOW ARROWS on this chart.  We have highlighted key predictive price modeling points with these yellow arrows on the chart to show you what our ADL predictive modeling system suggested would happen back in December 2017.

Now, take a look at the NQ Weekly chart with the ADL predictive price modeling results displayed onto it.  Pay attention to the similarities in the price patterns and the rotational modeling differences between the two charts.  The ES ADL modeling predictions from “Part I” are similar to this NQ chart, but the differences really tell us about how the technology-heavy NASDAQ (NQ) will react in a different manner than the Blue-Chip heavy ES.

Also, pay attention to the right side of this chart where the ADL predictive modeling system is suggesting price weakness will roll into the NQ near May 2018 and how this may become an issue for some traders.

Remember, the differences between these two charts really show you where strengths and weakness apply to the different sectors of the US stock market.  One sector may be trending upward while another sector may see weakness.  All of this plays into how we find and see opportunities for our members and decide on trading opportunities for success.

 

Think about how powerful this predictive price modeling system really is to be able to call this market moves 10~20+ months in advance.  Certainly, it is not perfect in every prediction, but the advanced knowledge and resources it provides is has proven to be a powerful tool for insight into future price direction.

It is not too often that we share this level of research with the general public. We issued the September 2018 research post because we wanted to warn our followers that a massive price decline/rotation was about to unfold.  You can read all of our free research posts.  Today, we are sharing with you our ADL predictive price modeling results for the next 3~4 months for the NQ – how valuable is that?  If you save or print this article, you will be able to reference it going forward for the next 90+ days and compare the real price action to our ADL predictive modeling results.  We believe the results will be similar to what our ADL is suggesting and we can see these ADL results for any instrument traded throughout the world.

We believe 2019 will be an incredible year for skilled traders and we believe the markets will set up numerous trade setups for fantastic profits.  We are already hard at work developing new member tools, research models and algo trading systems to help our members take advantage of these incredible market moves.  Please take a minute to see how our researchers and traders at www.TheTechnicalTraders.com can assist you this year.  We will be launching an incredible new member tool in about 30~60 days.  You won’t want to miss this fantastic new software utility to help you find and execute great trades.  See you in the member’s section of our site.

Chris Vermeulen

Our May Stock Market Prediction – Part 1

February 8, 2019 Chris Vermeulen     As we enter the final stage of our market predictions from nearly 5 months ago, we thought it would be a good time to revisit these predictions and to update all of our followers with some timely and, apparently, accurate market data.  We hope that many of you remember our predictions from September 2018 where we called for a 5~8% market decline, followed by a basing market headed into the November 2018 US elections, followed by a deep “Ultimate Low” price rotation before we called for an incredible upside price rally?  The reason it is so important to watch for and understand all of our research is that we are attempting to provide great value and insight to our followers as well as help them protect their open positions from unknown risks. As a bonus to all of this, we are going to include predictions … Continue reading

What’s The Fascination With Football? Pre-Game or Post-Game Reading Suggestions

I get it, today is the big day for football fans but when the markets open in the morning thoughts return to which markets are hot and which are not.

We have some great articles below for your reading and yes, I am bullish on the commodity/resource sector as are others.

It seems reasonable that this is the time to be an aggressive investor in this sector for the next few years.

Late comers will be paying substantially higher prices for shares/stock warrants, but it is your choice, now or later.

Look at this chart from our friends at CaseyResearch.com, which should motivate you to be invested now as the entire commodity sector is at its lowest in decades relative to the S&P500.

For me, there is only one way to play this ‘game’ by investing in quality junior mining companies and/or long-term stock warrants trading on those companies.

If you are not familiar with stock warrants, you can receive The Stock Warrant Handbook for FREE by visiting, http://CommonStockWarrants.com along with more freebies.

As well, many investors are finding great opportunities with warrants on the U.S. stocks in other sectors, bio-techs, pharmaceuticals, banking, blank check companies, etc.

Remember that only 25% or so of my personal portfolio is in stock warrants, the balance are common shares in the junior mining companies and I am on the hunt for new additions to my portfolio.There are many interesting opportunities in stocks as well as the stock warrants available today, so if you are not a current subscriber, LET’S GET YOU STARTED NOW.

The next several years, 2019 – 2021 will see some exciting times in the PM sector and I am looking to make a fortune. Do you want to follow me?

Let’s have some fun and make money together.

Recent Articles On Our Websites:

From the shores of Lake Chapala, Jalisco, Mexico

Dudley Pierce Baker

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