Spock is a professional market trader, and mining analyst, who has been trading the global financial markets across all asset classes for over 30 years. The focus is on the gold and silver mining sector, where extreme value propositions are now being identified, after a five year grinding bear market in the sector. It was the second worst bear market in the sector since 1869, 150 years. The $HUI index was down nearly 85% into the January 2016 lows. The bigger the bear market, and this one was a big one, the bigger the subsequent bull market.
Spock uses an extra-day trading system which generates trading signals, either long, short or flat, after the market close each day. The trading signals are generated from a proprietary matrix of indicators over several time frames, which have been extensively back tested and validated in real trading over the last 12 months, to generate consistent profits.
Only the best of the best gold and silver miners are used for trading, based on fundamental criteria including balance sheet strength, consistent earnings, strong management and good projects. Before considering a company, Spock speaks with management, in order to help validate the company and its upside potential. The original Spock Global Matrix (which screened all market sectors) was posted in real time on another forum and it achieved 38% Profits in 9 Months (or 50% annualized). The Spock Gold and Silver Miners Matrix has achieved about 50% realized and unrealized profits in less than 2 months since inception (January 2016). Users did not need to watch these markets intra-day at all except for the Buy/ Sell signals daily. This is an unemotional Trading System with clear and concise buy and sell recommendations which has now been adapted to specifically trade in precious metals mining sector.
In short, by following the Spock Miners Matrix you will be invested in only the crème de la crème of PM Miners. Some will be buy and hold. Some will be traded based on constantly changing matrix signals . A Hedging Strategy using HGD or DUST, both gold miner bear ETFs, may be employed periodically to protect the core positions, subject to the matrix trade signals. In addition, Texas hedges may be employed during impulsive moves higher.
The Subscription Price: US$499 for 6 months.
While there are No Guarantees when investing , we expect that the profits should be many multiples of the subscription price, and far more than just holding some sector ETFs such as GDX and GDXJ, which hold some mediocre gold and silver stocks, based on Spock Matrix metrics.
Trade Well and Prosper. Spock.
For the Spock Gold and Silver Mining Matrix , you will see each stock rated according to this model, marked in the Traffic Light column. Most of the holdings are Weinstein Stage 1 or 2, but some are also still in Stage 4, which I am avoiding right now, but at some stage they will transition to Stage 1 then to Stage 2. In addition to the Weinstein overlay I am using a proprietary extra-day algorithm to generate the trade bias (buy and sell signals). Hope this explains what is going on in the background. This is not a not a hit and miss affair folks. What you are getting is an edge in the market in a beaten down sector where the value is astonishing in many cases.
Weinstein’s strategy revolves around two themes: identifying which stage the stock is in and using a 30-week moving average to help with timing and identification.
Stage 1 is the horizontal trading range that begins the method. After declining out of stage 4, price moves sideways, sometimes rising above the 30-week moving average and sometimes not. The moving average flattens out, following price horizontally. Price is choppy but usually forming a rectangle or sideways price movement. Volume may rise as people cash out of the stock after waiting for it to move up.
Stage 2 is the uphill run. Price breaks out of the trading range of stage 1 on impressive volume, which helps power the stock upward, leaving the moving average trailing behind. In the early portion of stage 2, price may throwback at least once to the top of the trading range marked during stage 1. The moving average turns up. Price makes higher highs and higher lows (think of an ugly double bottom here). If you don’t see higher lows, then it’s not stage 2. Price will remain above the moving average
Stage 3 is the top. Price levels out and begins to move horizontally again. The moving average is climbing but flattens out, eventually catching price, slicing through it. Volume may increase as price churns sideways, forming sharp peaks and troughs while trying to pick a new trend direction. Weinstein says traders should take profits in this stage, but investors can hold on by selling half their position. If price moves up, forming another stage 2 advance, then continue to hold. A downward breakout from the trading range should cause a sale.
Stage 4 is the downhill run. Volume is not the key to this stage because it can be heavy or light as price drops. Price breaks out downward from the stage 3 top and may pullback into the trading range. After that, though, price continues down. The moving average usually remains above the stock as price drops.
<strong>Most of the small and mid tier gold miners in the Matrix are Stage 1 and 2. So that is where the focus is. Many large cap miners are not in the matrix, for a reason, including balance sheet issues, like debt. So they are generally excluded from coverage. Examples of those excluded are Kinross, Goldfields, DRD, Anglogold, Newcrest Mining etc where the debt is a significant part of their enterprise value, and will weigh them down in the future as cash-flows get consumed servicing the debt. </strong>
The other point worth noting is that GDX includes a lot of these highly indebted large cap miners. For that reason, as an investment, GDX will generally underform over the longer term, compared to the stocks in the Spock Matrix.
Trade Well and Prosper. Spock.