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Master Resource Trader

5 stars

15477 Reads | 46 Comments | 32 People call this a favourite

We will focus on opportunities in the natural resource sector, especially the precious and industrial metals on the Canadian exchanges, using charts to focus on trade management, price target selection, and risk reward analysis. We look for undervalued companies, particularly when they need financing. Fundamentals are good to know, but it is more important to understand a stock's financing cycle, its mining cycle, and the general market cycle. When we can find a stock trading at a tremendous discount to its Net Asset Value, it needs to raise money, and the general markets are down, then you have a potentially perfect storm. As experienced commodity investors have found, it does no good to have a great company and a terrible stock. If you're fundamental story was priced in several years ago or your stock is being shorted by immoral financiers, it does one no good to be getting taken to the cleaners for years at a time, hoping some market mania or greater fool will come along.

  • GDXJ Relative Strength Ripe for Risk Reversal Long Trade - Week 8.5 Update - Rollup Opportunity

    134 Reads | 1 Comment | November 18, 2014

    As expected, the recent action was little more than a shakedown and margin-call event for the banksters.  The entire air pocket that formed on most gold charts after the shorting event has now been vacuumed up . While many wrong-way, long-only newsletter specualtors pulled the plug on their clients in the past two weeks (and bravely announced they'd get back in when 90% of the miners...

  • DOW Fibonacci Lines Hitting Multyear Sell Targets

    115 Reads | 0 Comments | November 10, 2014

    The DOW and many of its components are hitting some lofty price targets.  The 161 fibonacci extension off the 2009 lows , and the 100 fibonacci extension off the 2012 pullback are both in play. MO - MO should be retickered "MO-MO" as it flames out into the $50 area and a major fib line MSFT -  We felt the 20 year breakout on MSFT at the $40 area would hold, bolstering...

  • GDXJ Relative Strength Ripe for Risk Reversal Long Trade - Week 7 Update

    197 Reads | 5 Comments | November 8, 2014

    Our view of the recent action in gold and gold stocks, besides the usual crimes to run stops an issue margin calls, is that it is a retest of a breakout from a broadening of fan bottom.  (right click view image for bigger charts) This is supported by relative strength analysis of leading stocks in the sector.  FNV -  Pierre LaSonde , a good-guy bankster / miner , who is a...

  • GDXJ Relative Strength Ripe for Risk Reversal Long Trade - Week 6 Update

    69 Reads | 0 Comments | November 5, 2014

    We are 6 weeks into our GDXJ trading strategies, which were originally based on looking for an upside move into next spring,  but also used long puts to protect, and even profit, from the downdraft which has since taken place. STRATEGY 1 Our original strategy is to use outperforming gold stocks equal weighted with protective long puts into next spring.     We used the...

  • GDXJ Relative Strength Ripe for Risk Reversal Long Trade - Week 4 Update

    318 Reads | 7 Comments | October 17, 2014

    Today, we look at our week 4 progress on  two strategies for investing in precious metal into early 2015 or the next major intermediate resistance levels in the high 40's on GDXJ.   To briefly review,  Strategy 1 involves owning the dollar equivalent of 10 lots of GDXJ (about $36,000 when initiated), while hedging with 10 long-dated 33 Feb 2015 puts purchased on the GDXJ...

  • GDXJ Relative Strength Ripe for Risk Reversal Long Trade - 2.5 week update

    125 Reads | 2 Comments | October 8, 2014

    Following up with our weekend update on our  GDXJ hedged trade, we are 10 days away from options expiration, the Fed minutes are out, all gaps in the GDXJ chart (except at $28 are filled, it would behoove us to take some more defined risk  exposure to the downside and capture the short term downside before our Oct 33 puts expire. I did a screen grab of a 31/29  bull put spread...

  • GDXJ Relative Strength Ripe for Risk Reversal Long Trade - 2 week update

    270 Reads | 0 Comments | October 6, 2014

    The past two weeks have brought on an accelerating descent in gold and silver shares - "adversity investing" conditions for PM investors, to borrow a football coaching phrase. (Note - this post was started over the weekend and finished this morning - prices quoted have fluctuated a bit with the gut-churning volatilty surrounding the U.S. jobs (con-job) report) Once again, the dollar...

  • GDXJ Relative Strength Ripe for Risk Reversal Long Trade

    187 Reads | 0 Comments | September 20, 2014

    The GDXJ is showing healthy relative strength amidst the current rinsedown of the eternal precious shiny yellow metal.  There was a lot of volume shifting toward favored issues Friday.  Here are some of the stronger plays within the sector and a suggested options play to give maximum exposure and relative safety for the next market leg. Semafo continues its multiyear sector...