This is a lengthy Free “From the Desk of Nick Nicolaas” (FDNN) letter. I wrote this lengthy Free letter to entice you to subscribe to my Paid-for FDNN letter. Our Paid-for letter will give you Private Placement Alerts and Alerts of shares of selected mining companies that we are buying and selling - - several weeks before the Free FDNN subscribers are alerted.
Paid-for subscribers will receive Timely Messages of Trades we make based on the Socrates Alerts. You may not have the time but we do. We put in the time to study and understand the Socrates ‘Trading Level’ service by studying and understanding the Socrates generated Arrays, Reversals, Charts and relevant data.
Future Free FDNN letters will not give you this much detailed information as in this Free (FDNN) version!
In this letter today we cover the following:
1 - Our Trading based on Martin Armstrong’s ‘Socrates’ Alerts;
2 - The Dow and S&P;
3 - The long-term outlook for the Canadian dollar;
4 - The Canadian Mining Industry;
5 - The Canadian dollar; and
6 - KISS.
We started 2016 with a bang and to date we had a profitable start TRADING based on the Martin Armstrong ‘Socrates’ Beta test "Trading Level" service which has been phenomenally beneficial for us, during this tremendously volatile month of January.
During this month, we have disseminated five (5) Messages (Alerts) to our Mining Interactive Paid-for Subscribers and if our subscribers acted on those Alerts, they should have made interesting profits.
SPXU: On Wednesday, January 13 we went Short the SPXU and on Thursday, January 15 we covered those Shorts and - - we made money.
Then, on the same day we went Long the SPXL and sold some on January 21 with some profits and sold the rest with great profits on January 22.
We then switched to Gold and on Tuesday, January 27 just before the close at 12:56pm (PST), we bought GLD February 26 calls at a strike price 107.50 cost $1.85 per Contract. On Thursday at 6:37am (PST) we averaged down and added to our position by buying some more GLD calls February 26 at a strike price of 107.50 cost of $1.31 per Contract.
As of the close on Friday we have made great profits on the GLD but, until we sell and actually take the profits they are only paper-profits.
When we make these trades is important to immediately consider an “Exit Strategy” and we do this by looking at the break-through of previous “Bullish Reversals” generated by Socrates.
For example in order to decide on our Exit Strategy for the GLD call, we look at “New York Comex Spot Gold”. The support stood at 1,117.00 (major), thereafter support at 1110.90 and then1108.40 (major).
If at the close on Friday January 29 the 1,117.00 and/or 1,108.40 these Reversals would have been elected then we would have considered closing the GLD calls tomorrow, Monday February 1. But that was not the case and Gold closed at 1,118.10 and consequently, we will not close our positions yet.
On Monday February 1, we may see a temporary Low in Gold and whereas we expect Gold to still go higher for time being (see next paragraph), we will make a decision on Monday if we should add to our GLD position or not.
We will now listen to Socrates, yes listen because, Socrates the computer, not only gives us written Alerts but, the computer’s voice gives us the Alerts verbally as well. Socrates told us that we will have a turning point in February which can be a high or a low moving into the next Benchmark target (Note: we now expect that Turning Point to be a high). Together with the positive Bullish 1,118.10 Friday close, we will hold onto our GLD position until we get closer to that Turning Point and when we receive the Socrates ‘Trading Level’ Alert then - - - we will sell the GLD calls and take our profits.
At the same time of the GLD call sale we will go SHORT Gold!
Socrates says: “watch the 1097 level [in Gold] for that is key support. Break that and its looking into a low into the second benchmark” and Martin Armstrong said yesterday at the Michael Campbell ‘Money Talks’ Conference here in Vancouver Canada: “Gold has to make a New Low this year. If it penetrates 1080 then it goes lower. The Key is the US dollar, if it goes up then that is what will take gold to as low as $680.00”. Post the Low, we will see a Bull Market in Gold when it goes up in ALL currencies.
With regard interest rates he said: They have nowhere to go but - - up.
Nick Nicolaas note: We very much hope that the March/April period will give us THE low otherwise THE low in Gold may not occur until the fourth Quarter of 2016 or in 2017.
Martin Armstrong December 25, 2015: “We have to realize that we have a conflict or split-high in gold that generates the problem. A reaction from the 2012 high close is 2015, but a bear cycle is complete from the 2011 intraday high after 2016. The worse case scenario is a bear cycle calculated from the high close of 2012, which infers a low in 2017.”
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On the Dow and S&P Socrates says: “We have penetrated last year’s low in the cash S&P500, but not in the Dow yet. The Yearly Bearish does not come into play until we get to the bottom of the upward channel. Penetrating last year’s low is indeed setting the stage for the Slingshot. Everything on our models is clearly pointing to this trend extending into 2020, and instead of concluding by 2017 that will be the starting point.
We NEED the vast majority to get really bearish calling for the end of the world and declines of 50% to 90%. This is the fuel for the Slingshot we need in place, just as we saw in 1987.
The Dow needs a closing above 16350 [Friday week and month-end close16466] to stabilize for now temporarily. Otherwise, we are not out of the woods here until we pass March. To suggest that the major low has been made, the Dow would need to climb over the 17750 level on a weekly closing basis. Keep in mind we are in a string of Directional Changes for the next 3 weeks. So expect this to remain vulnerable and choppy”.
For Monday February 1, 2016, the S&P 500 Index Futures on the ‘Daily’ show a sharp swing to the upside, on the ‘Weekly’ it shows pressing higher but, - - watch out - - because, on the ‘Monthly’ it is Bearish with Socrates stating for the ‘Quarterly’: “possible important Low”.
In answer to the question posed to Socrates by Martin Armstrong “What is the long-term outlook on the Canadian Dollar”? Socrates answered: “Martin, I remain long-term Bearish on the Canadian dollar. The immediate decline continues from a high of 110.43 [to the US$] to a 68.09 low. Here in 2016 there has remained the risk of pushing lower into 2020. Only a major collapse to 50 cents by 2017 would imply the conclusion of the decline. Otherwise we could see a complete monetary reform as early as 2018 going into 2020or the latest 2032 in sofar the currency based system. This is likely to follow a sovereign debt crises which should begin to erupt by 2017. I would be very cautious about investing in Canadian based assets since you are US dollar based.”
Nick Nicolaas note: The answer by Socrates with regard the Canadian dollar gives you an idea of the power of that computer. I have underlined the last part of the sentence because; it indicates that Socrates recognizes the region in the world that you and I are based and live in. We all have to make our investment decisions from the perspective of where we are based and in the currency of our individual regions.
With regard the Mining Industry, Martin Armstrong says: “The mining industry is in collapse. Everyone expanded dramatically expecting China to never stop buying. The loading up of debt is still likely to see many companies get in trouble. It is likely to see the entire industry be downgraded on a wholesale basis. Those looking at the miner stocks should pay attention to the forecast on each one [of the Companies Socrates ‘Trader Level’ covers under the Mining Shares section]. Some of the biggest will fall.”
KISS – Keep It Simple Socrates. Just follow a few markets like: The Metals (Gold/Silver) The Indexes (Dow, the S&P), Foreign Exchange (the US$, your own currency, in my case the Canadian dollar). You do not have to trade in everything - KISS.
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I will close this missive by stating the same thing as in the first paragraph of this FDNN letter: “If you want to make money then subscribe to our Paid-for letter for a few months to see what we are Trading, Buying and Selling.
Stay Tuned for our Next
free of charge “Looking over the Horizon” FDNN letter!!
Happy investing, from Mining Interactive Corp. in Vancouver, Canada.
Nick L. Nicolaas
Direct: +1 (604) 657-4058
Nick L. Nicolaas, Mining Interactive Corp. and its Associates (collectively referred to as NLN) are not registered advisors and do not give investment advice. NLN’s comments are an expression of opinion only. Although NLN may have an investment in some of the companies NLN mentions or writes about in his , nothing should be construed in any manner whatsoever as a recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While NLN believes all statements to be true, they always depend on the reliability of NLN's sources. NLN recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, NLN urges you to confirm the facts on your own on any companies MI mentions before making important investment commitments. The “looking over the Horizon” Stock Alert letter published by Nick L. Nicolaas does not, and cannot, constitute a recommendation to buy or sell any security.
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The material in the Stock Alert letter published by Nick L. Nicolaas is for informational purposes only and is not intended to and does not constitute the rendering of investment advice or the solicitation of an offer to buy securities. The Stock Alert discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The Act). In particular when used in the preceding discussion the words “plan,” confident that, believe, scheduled, expect, or intend to, and similar conditional expressions are intended to identify forward-looking statements subject to the safe harbor created by the ACT. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward looking statements. Such risks and uncertainties include, but are not limited to future events and financial performance of the company which are inherently uncertain and actual events and / or results may differ materially. In addition we may review investments that are not registered in the U.S. We cannot attest to nor certify the correctness of any information in this note. NLN owns shares in Meadow Bay Gold Corporation. Please consult your financial advisor and perform your own due diligence before considering any companies mentioned in this informational bulletin.
January 31, 2016