QUESTION …HOW IS THE HIGH FREQUENCY/ALGORITHMIC TRADING DONE?To better understand it, we know a wealthy investor in Florida, a Mr. Smith who does “high frequency type trades” exclusively for himself! We estimate that he has over $100 million in investments. We are trying to simplify this with a small example but understand that each day we are seeing the major traders doing hundreds of millions of dollars in high frequency trading and algorithmic trading.

                                    ….. What  so few understand…..but they should….. Some of the most knowledgeable yet still uninformed investors and many media people do not understand a key factor that has carried and supported the stock market (and too many individual stocks) to such overvalued levels for exceptionally long periods.

Gold..our view! Posted on July 13, 2020 | By KCGrainger |           The Gold market …… we expect much more upside…but expect downdrafts and pit-stops. Our analysis suggests that we are now in a very strong market for gold and precious metals stocks which should continue for several years.  Few investors get involved when stocks are undervalued. Our analysis also suggests that the Industrial stock market such as the S&P 500 faces a long bear market.

Save Canadian Mining…Restore the uptick requirement If someone wanted to destroy the Canadian junior mining industry, that person couldn’t do a better job than is currently being done by banks, brokers, traders and regulatory agencies. Permitting stocks to be shorted on downticks (as a stock is moving down in price) is outrageous. It artificially creates an image of weakness causing legitimate shareholder concern often leading to selling by “spooked” genuine shareholders. It is not disgruntled shareholders who are selling and certainly have the right to sell their shares, but it is traders who are borrowing the shares of the true shareholders to sell to create weakness in the stock. We also question whether many of the short sellers actually do borrow the shares properly in compliance with the rules. We are not questioning traders’ rights to short stocks which is standard and an integral part of stock markets functioning smoothly. Shorting is for the most part essential for market makers (specialists) to effectively function. The fact is that market makers(specialists) simply do not have and cannot hold adequate “inventory” positions in stocks and must short to fill buy orders and keep balanced markets. And keep in mind until recent years , they never were permitted to short on downticks, Today, restoring the uptick rule for short selling is crucial to the survival of the “junior” Canadian mining industry.  We also believe that all Canadian and American stock markets should again prohibit shorting on down-ticks. We are going to report on this very questionable […]

Wall Street on Parade should be required reading as it provides information that few investors are aware of. Many feel that the investing public has been cheated and taken advantage of for decades. We note that the US brokerage industry has paid billions of dollars in fines for their activities. We advise you to read this site regularly if you really want to know what is vital for investing success. http://wallstreetonparade.com/?

Investors often ask “why do gold stocks often move at a much higher rate on a percentage basis than the price of gold itself. The fact is that Gold stocks can give investors much greater upside “leverage” over the price of gold bullion. For example, if the price of Gold moves from $1200 to $1400, the return is approximately 16%..Not bad! But with the same $200 increase in gold a $4 gold stock can rise to $12 or more, that is a return of 100% to 200% and often it is much more. In a small cap “junior” we can often see 1000% to 1500% moves up.  That enormous difference in the returns is the reason why successful gold investors buy the gold stocks instead of the actual gold bullion (or gold ETF’s). Yes, that is the primary reason that makes many of the gold stocks so attractive when the price of Gold bullion is rising.                                            Here’s an example of how it works… Producing gold mining companies generally have a fixed cost to produce (the all-in cost). It doesn’t matter if gold is selling at $900 or $1400 or at $1500 an ounce… the mining company’s costs generally stay the same. Now if a mining company is producing gold at $1200 an ounce… and the gold price is $1300 an ounce… the company makes a profit of $100 an ounce…..But if the price of gold climbs to $1500, the company  will make a $300 profit per ounce. That’s a huge 200% […]

July 11, 2019 Our outlook remains the same; we do expect a “bear market” which has been avoided for several years by near zero interest rates and central bank engineered stock market buying. Many stocks have already commenced a bear market. Keep in mind that buybacks now have totaled over $5 trillion which has added enormous support to the stock market.                                                                                                                                             In the past, bear markets and normal periods of stock market consolidation occurred cyclically allowing investors superb opportunities to invest while specific stocks were cheap or actually “on sale.” Notice that when stocks are undervalued and overlooked, the major brokerages fail to recommend them in a timely manner? Never fails! The “revered” large American brokerage houses cannot afford to see periods of low volume or bear markets as they cause their profits generally to plunge. A Quebec based institutional money manager recently said to me that when specific stocks are often ludicrously overvalued, they remain strong “buys” by the brokerage analysts. The brolerages must keep their meters running to carry the salary expenses of the incompetent and inaccurate analysts. Yet, we are usually near fully invested in many underperforming and undervalued stocks. Scandal? What few investors and people in the media are aware of is that if a broker or money manager is at a major American brokerage house, he or she is not permitted to research and choose his or her own stock recommendations for clients. They are restricted to recommending stocks that are covered by their own […]

As our research has suggested that we will soon commence a powerful bull market in gold and many but not all gold, silver and exploration stocks, we suggest that you visit…. the www.Canadianmineanalysis.com When the gold train leaves the station, it may be late. The officers and directors of the gold sector companies have been very heavy buyers for the last several years as well as being large shareholders as well. it makes sense at least to us to be there.

A money manager from upstate New York sees some signs that suggest caution.. Something is not right—The Dow Jones Transports are hardly above where they were 5 yrs ago! The Dow and Transport ALWAYS prosper or suffer together as one makes the products and the other transports them to markets.  The Dow has soared much higher over the past 5 years although both are flat to down since January–many computer programs and Foreign money- center on the Dow stocks and remember the Dow is constantly replacing it’s components through the years taking out old line companies like Eastman Kodak and Sears, AT&T and GE with newer faster growing companies like Apple and Walmart so it keeps the Dow moving otherwise it would be a disastrous chart having gone nowhere for decades. . Keynesian Economics espouses growth by printing money with nothing backing it while history has shown paper currencies ALWAYS returns to their intrinsic value which is usually nothing!  All this cheap money has to go somewhere so it has gone into the Big names even if many are vastly overvalued as well as into Highly priced Real Estate and Art etc. What is the value of a Dollar today???   Only what it can buy—it’s no longer a store of value! and if you read the article I sent yesterday on Inflation you can understand how companies are shrinking the amounts of goods they sell while slightly raising prices to fool the buyer. The markets are an attractive investment because […]

INSIDER SELLING… Last week, we saw the largest amount in dollar value of officers and directors selling their personally owned shares, yes, it was the highest dollar value in market history. And it was only the eleven largest transactions that were included in this total. Last week’s insider stock sales totaled an astounding value of over $3 Billion ($3,000,000,000) ! Insider buying was barely 2% of the dollar value of the selling. It is quite a contrast and has been ongoing. These recent “insider sell” levels in the past have always been concurrent with the beginning of what led into brutal bear market declines. We have said many times, odd as it may seem, bull markets do not end due to overvaluation. They usually end with 1- interest rates rising, 2-often with a decline in the money supply and 3-an economic slowdown. But note well that risky market tops are usually accompanied by overvaluation. We are seeing none of the three above ingredients at present. Yet we are seeing extreme overvaluation in far too many popular heavily recommended stocks. Yet, we see heavy insider buying and ownership in many mid-cap and small cap stocks. You know many of them as the ones that are not touted and hyped by the major brokerage houses and banks….those mid cap and small cap stocks also represent what is undervalued not what is popular.