Tag Archives: trading ideas

Two Great Trade Ideas That Are Even Better After Last Friday

The markets are truly burlesque right now.

The mining stocks were hit a bit on Friday, although they bounced back nicely in the afternoon after an early shellacking.   And the homebuilders experienced a “dead cat” oversold bounce, fueled by the insane spike higher in the Dow/S&P 500.    On Friday it was almost as if the every time negative economic and geopolitical news/events hit the newswires, the S&P 500 would spike higher and the mining shares would get clobbered.

The mining stock trade idea that I published the week before last still has some very easy upside in it.  This assumes that the mining stock sector, minimally, moves at least sideways and doesn’t get victimized by a manipulated shakedown.

The homebuilder short-sell idea has traded sideways since I posted my research report.  It’s up only 20 cents from when I published the short-sell idea.  This is vs. the DJUSHB index, which has bounced 1.3% since July 31.

I have been stressing that the homebuilders have dropped like a rock since July 24 and are overdue for an oversold/short-squeeze bounce.  Read my report and let this bounce “ripen” and then start legging in to your short position in this stock.

Both trades should outperform their respective sectors.  You can access either report by clicking on the icons below:

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Incredible Trade Opportunity In A High Quality Mining Stock

I want to preface this by saying that I try to focus exclusively on opportunities in the junior mining sector. For instance, tomorrow I will be having a discussion with CEO of a junior miner that I think could have the potential to go from 18 cents to $8 eventually.

However, I focus on the mining stocks because this is one of the few sectors of the market that has embedded information and trading inefficiencies. This is the case because of the relatively few “eyeballs” that watch or follow this sector and many of those eyeballs – especially the Bay Street (Toronto) and Wall Street analysts are either incompetent or so afraid of their own shadows that they can’t bring themselves to take any risk, even when they understand the fundamentals.

I believe this stock has an easy 10% outright, unannualized return based on today’s close, assuming the entire stock market doesn’t sell off hard or assuming the precious metals sectors minimally moves sideways over the next 5-10 trading days.

My report outlines why the opportunity was created, why Wall Street and Bay Street are clueless with their analysis of this sector and why this particular has the potential for a quick short term gain.   It’s also been set up for anyone who prefers large cap stocks to buy in now and outperform all large cap mining stocks going forward.

In addition to my analysis, Nick of Denaliguide (link at the top) was kind enough to put together his high quality, unique technical perspective and allowing me to include it in my report.  He thinks this stock has great short term trading/investing technicals.

You can access this report here:   Incredible Short Or Long Term Trade Idea

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Disclosure:  I put this stock into the fund I manage this afternoon just below $37 and just before the close today.   Whether I keep it for a quick bounce or longer term will depend on several factors.