The Trader's Block - The Cure for the Common Trade

Time To Go To Cash?

noreply@blogger.com (Rob Wilmink) — Wed, 16 May 2012 15:02:00 +0000

Let me start by saying I am truly humbled by the number of followers we have out there. It has been awesome and I hope the future is bright for our stock market and economic commentary.

We are at a tipping point in the worldwide markets, and though I don’t feel we are in the same boat we were in 2007 and 2008, I feel the markets are too unstable to make substantial trades and investments.

My reasoning is simple. The Euro crisis, no matter how little we make of it, is not going away anytime soon. Secondly, we have to test the S&P low of 667 in order to be in a new Bull Market. Those issues have to be dealt with before an “all clear” is apparent. Lastly, too many people are abandoning fundamental investment strategies and looking too closely at Technical Indicators. That is not a good sign for the near term future of the markets. Technicals have to confirm fundamentals.

If Greece leaves the Euro, the Euro will tumble, the U.S. dollar will rally and commodity prices will get crushed. Thus, sending commodity related stocks tumbling. Not a good position to be in.

My advice today is to go to cash and wait all this out. There will be plenty of opportunities in the coming years. Right now there just are not any.

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Yamana Gold Pullback

noreply@blogger.com (Rob Wilmink) — Thu, 15 Dec 2011 15:57:00 +0000

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CISCO Trade Update

noreply@blogger.com (Rob Wilmink) — Thu, 15 Dec 2011 15:49:00 +0000

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Economic Growth Continues in 2012

noreply@blogger.com (Rob Wilmink) — Thu, 15 Dec 2011 13:00:00 +0000

On December 6, 2012 the Institute for Supply Management released their December 2011 Semiannual Economic Forecast stating that economic growth will continue in 2012. This is encouraging going into 2012. Some key points to note is the economic forecast indicates that it will continue to expand in the first half of 2012 and even at a faster rate in the second half of 2012. As you prepare to review your success and failures of 2011 and gear up your trading plan for 2012 this is a great forecast to get familiar with and know what to look for in the year ahead. Remember the trend is your friend and the ISM data suggests a stronger 2012. Below is the link to the full report.

December 2011 Semiannual Economic Forecast

Source: Institute for Supply Management

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Paramount Gold Chart Update

noreply@blogger.com (Rob Wilmink) — Wed, 14 Dec 2011 20:20:00 +0000

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Non-Manufacturing Sector Continues to Grow

noreply@blogger.com (Rob Wilmink) — Wed, 14 Dec 2011 16:00:00 +0000

Yesterday we highlighted the most recent ISM Report for manufacturing so today we will focus on the non-manufacturing data. We highly encourage everyone to read this monthly report including our clients and followers. It is a key metric we follow here at the Traders Block and it will help you to become a better trader and reduce the clutter the talking heads love to put in your head. The facts don't lie. Here is an excerpt from that latest report.

Excerpt: NMI at 52% - Economic activity in the non-manufacturing sector grew in November for the 24th consecutive month, say the nation's purchasing and supply executives in the latest Manufacturing ISM Report on Business.

Again we should be doing double backflips with this kind of data. Remember to take control of your own money and the trend is your friend.

November 2011 Report: http://www.ism.ws/files/ISMReport/ROB201112.pdf

Source: Institute for Supply Management

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Gold Breaks Key Trend Line Support

noreply@blogger.com (Rob Wilmink) — Wed, 14 Dec 2011 15:21:00 +0000

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Manufacturing Sector Continues to Expand

noreply@blogger.com (Rob Wilmink) — Tue, 13 Dec 2011 16:04:00 +0000

The most recent ISM Report is out for everyone to read and we highly encourage our clients and followers to read this report on a monthly basis. It is a key metric we follow here at the Traders Block and it will help you to become a better trader and reduce the clutter the talking heads love to put in your head. The facts don't lie. Here is an excerpt from that latest report.

Excerpt: PMI at 52.7% - Economic activity in the manufacturing sector expanded in November for the 28th consecutive month, and the overall economy grew for the 30th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report on Business.

We should be doing double backflips with this kind of data. Remember to take control of your own money and the trend is your friend.

November 2011 Report: http://www.ism.ws/files/ISMReport/ROB201112.pdf

Source: Institute for Supply Management

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Trade Update for PZG and HL

noreply@blogger.com (Rob Wilmink) — Fri, 02 Dec 2011 15:48:00 +0000

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Watch now for the latest trade update on $PZG (Paramount Gold and Silver) and $HL (Hecla Mining).

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Add NCR to Your Watchlist

noreply@blogger.com (Rob Wilmink) — Mon, 28 Nov 2011 16:05:00 +0000

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Is This a Dead Cat Bounce?

noreply@blogger.com (Rob Wilmink) — Mon, 28 Nov 2011 15:40:00 +0000

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What's Next For The S&P 500?

noreply@blogger.com (Rob Wilmink) — Wed, 23 Nov 2011 15:54:00 +0000

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New Stock Recommendation: Plum Creek Timber $PCL

noreply@blogger.com (Rob Wilmink) — Fri, 11 Nov 2011 19:41:00 +0000

We have a new stock recommendation today Plum Creek Timber $PCL. We are coming into the seasonal strength of the timber industry. Buy at market. The ex-dividend date is Tuesday. We are looking for a 20% move in this stock.

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Update on S&P 500 and CISCO

noreply@blogger.com (Rob Wilmink) — Fri, 11 Nov 2011 15:45:00 +0000

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Happy Veteran's Day from all of us at The Trader's Block

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Where Will The S&P End Up At Year End?

noreply@blogger.com (Rob Wilmink) — Thu, 10 Nov 2011 22:16:00 +0000

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Where Will Cisco Go From Here?

noreply@blogger.com (Rob Wilmink) — Thu, 10 Nov 2011 15:23:00 +0000

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Filling The Gold Channel

noreply@blogger.com (Rob Wilmink) — Wed, 05 Oct 2011 15:02:00 +0000

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Gold Miner Stock Picks

noreply@blogger.com (Rob Wilmink) — Fri, 30 Sep 2011 15:20:00 +0000

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Checkout our new video of our latest stock picks featuring the gold miners Yamana Gold (NYSE:AUY), Hecla Mining (NYSE:HL), Primero Mining Corp. (NYSE:PPP), Kinross Gold Corporation (NYSE:KGC) and Barrick Gold Corporation (NYSE:ABX). Be sure to tune into the next edition of the Trader's Block live weekdays at 8:30am EST on BlogTalkRadio.

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What Is Wrong With This Picture?

noreply@blogger.com (Mark Burdette) — Fri, 23 Sep 2011 18:35:00 +0000

(NYSE: HL)

During the lunch hour today I was catching up on the news of companies that we have positions in and have recommended here on the Trader's Block. Just today we recommended Hecla Mining (NYSE: HL), the country's largest silver producer. As I write this blog post HL is down just under 6% for the day. At the same time silver is taking a beating for the third straight day in row down below $31 an ounce.

I was reading Dr. Mark Skousen's article on Seeking Alpha posted this past Wednesday and his blog post entitled "Why Gold Mining Stocks Are Ready To Take Off" caught my eye. He seemed just as frustrated as we are that they gold mining stocks are failing to keep up with gold. He pointed out that Hecla Mining, the country's largest silver producer, is down 35 percent (even more as of today) even though earnings have doubled. Yes I said earnings have doubled. It doesn't make sense does it. Isn't the market supposed to reward companies stock price with positive earning reports and record production rates. What is wrong with this picture?

As you know we hold positions in Yamana Gold (AUY), Paramount Gold and Silver (PZG) and Great Basin Gold (GBG) and we were encouraged by Rick Rule, President of Global Resource Investments four reasons why gold mining stocks are about to soar in the next few years. Be sure to read the article "Why Gold Mining Stocks Are Ready To Take Off". Tune in on Monday to the next Trader's Block radio show at 8:30am EST as we discuss this topic further. We are riding out the storm. Have a great weekend.

New Stock Picks Announced

noreply@blogger.com (Mark Burdette) — Fri, 23 Sep 2011 13:19:00 +0000

We are recommending two stock picks Hecla Mining $HL and Yamana Gold $AUY. Buy at the opening.

$GDX and $TNA Update

noreply@blogger.com (Mark Burdette) — Thu, 22 Sep 2011 16:49:00 +0000

A couple of days ago on The Trader's Block radio show we recommended you to short $GDX. Now is the time to buy to cover and take a nice profit. Also, you should now enter in your 4th and/or 5th and final layer into $TNA. Be sure to follow us on Twitter for the latest updates. Tune into The Trader's Block radio show weekdays at 8:30am.

$TNA Trade Looking Good But...

noreply@blogger.com (Mark Burdette) — Thu, 25 Aug 2011 14:14:00 +0000

The $TNA trade is looking good right now, but don't get too excited yet. We have a long way to go. Stay calm and stay focused. We are going to bounce all over the place for the next few weeks.

$TNA Trade Update

noreply@blogger.com (Mark Burdette) — Wed, 24 Aug 2011 22:31:00 +0000

If you are in the $TNA trade you should be up nicely. Also, you should have three 200 or more share layers at this point. We want to wait to make sure support holds at $36 before adding more. We will probably add there and then add the final layer on a breakout above that level. We will know where to add once new support is established.

Short Opportunity with Bank of America?

noreply@blogger.com (Mark Burdette) — Tue, 23 Aug 2011 18:39:00 +0000

We have been talking about Bank of America for months. Yesterday analysts stated that $BAC may need to raise 40 to 60 billion in new capital. Today, $BAC executives are denying trouble. My opinion, the capital needed is much higher than stated and the executives have their heads in the sand. They are in the fog and can't see out. We are a shorter of $BAC on the next rebound.

$TNA Trying To Establish Base

noreply@blogger.com (Mark Burdette) — Tue, 23 Aug 2011 18:22:00 +0000

It looks like $TNA is trying hard to establish its base around $36. It has repeatedly tested that level and held. I will feel a lot better if it keeps testing and holding through all this volatility. Once we establish a solid base at that (or at some level) we will be able to hold it for awhile. Good trading all.