Strategies For Oversold Markets

July 6, 2018

Dana Lyons joins me to share his thoughts on a couple markets that are at the oversold and low sentiment levels. These include the emerging markets and housing sector. He employs a strategy when trading these markets to ensure he limits any losses if the markets stay oversold for a period of time or get even worse. There are opportunities but it’s important to limit losses when trying to take a contrarian approach.

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    Jul 06, 2018 06:41 PM

    I’ll share anecdotal experience with housing. We purchased a new home in December, ’15. Having decided to return to our former haunts, we took a chance with which listed our home on multiple listing and pictures w/write-up on Zillow and Trulia, all for $395. The listing went live on a Monday and that day we had three showings. Tuesday we had two showings and a third one wanted to come at 8pm and we arranged for the next morning instead. Their realtor called about an hour after they left, with an offer that was our full asking price. Two days on the market. This will amount to a 28% profit for living in the home 2.5 yrs. and doing some landscaping/fencing. We had read where the market was hot but this is ridiculous.
    Not everyone has this luck. Average time listed is 45 days. There are lots of California buyers with cash offers. They seem to sell for about 2.5 times what this area sells for. During the ’07-’08 debacle this area lost about 50%. Might happen again since we’re well above those levels now. FWIW

      Jul 06, 2018 06:46 PM

      Silverdollar – congrats on the quick home sale.

      Ever Upward !

        Jul 06, 2018 06:54 PM


        Don’t you just love bubbles.
        My house here in Melbourne, Australia (despite a recent pullback in price) is ‘apparently’ worth 10× what I paid for it 22 years ago.
        I love listening to all the National RE podcasts.
        All these young people levered to the hilt on multiple properties on interest only loans.
        They unfortunately are going to find out that RE capital appreciation isn’t all unicorns & fairy dust.
        Bubbles all end in tears…..for some.

          Jul 07, 2018 07:22 AM

          That sounds exactly like the US real estate market from 2001 – 2007:

          “All these young people levered to the hilt on multiple properties on interest only loans.”

          History doesn’t always repeat, but it rhymes….

      Jul 06, 2018 06:55 PM

      The coming pension crisis in Mexifornia will distroy Home prices!

    Jul 06, 2018 06:43 PM

    July 3, 2018

    “As a result of the warrant exercise, the Company issued 2.6 million common shares from treasury and received total proceeds of $2.73 million.”

    “K92 is well financed, has a strong balance sheet, and mining and processing operations are cash-flow positive.

    As announced on June 26, 2018, K92 prepared an updated resource estimate on Kora North based on results from underground grade control and exploration diamond drilling, and face sampling. The updated resource estimate comprises a measured resource of 242,900 tonnes at 13.9 grams per tonne gold, 19 g/t silver and 1.0 percent copper; an indicated resource of 442,800 tonnes at 11.8 g/t Au, 21 g/t Ag and 1.2 percent Cu; and an inferred resources of 1,084,400 tonnes at 13.2 g/t Au, 15 g/t Ag and 1.0 percent Cu.”

      Jul 06, 2018 06:50 PM

      (KNT) K92 Mining looks set to really break out in the medium term.

      They’ve done a great job of expanding their resource through the drill bit, hit the new Kora zone which greatly improved their economics, they are profitable at production now, and they just raised money on warrants. Job well done.

        Jul 07, 2018 07:46 PM

        @Excelsior… nice to see it reverse, a lot of people suffered a lot of pain through the downturn and missteps (and various unexpected financings, etc).

    Jul 06, 2018 06:01 PM

    BRICS countries in plans to create new international gold market

    “Russia and China are spearheading new methods of gold exchange which will challenge traditional western hegemony in this vital market.”

      Jul 06, 2018 06:32 PM

      BRICS consider setting up gold trading system

      “The traditional (trade) system based in London and partially in Swiss cities is becoming less relevant as new trade hubs are emerging, first of all in India, China, and South Africa,” he said, adding “we are discussing the possibility of establishing a single (system of) gold trade both within BRICS and at the level of bilateral contacts.”

      “BRICS countries are large economies with substantial reserves of gold and an impressive volume of production and consumption of the precious metal, said the official. According to him, the new system may serve as a basis for the further creation of new benchmarks.”

        Jul 06, 2018 06:38 PM

        Crucial Factors Why Silver Will Increase More Than Gold During The Next Financial Collapse

        July 3, 2018

        Has to do with the collapse in the value of most assets as U.S. and global oil production plummets.
        The above-ground investment inventories and supplies of gold and silver are about the same.”

        “… Stocks, Bonds, and Real Estate derive their value from the burning of “more” energy in the future. It is essential that you understand the use of “More” in the previous sentence.”

        “When global oil production declines, so will growth and GDP. Without growth, the highly leverage debt-based financial and economic system will disintegrate. ”

        “As we can see, there was 2.25 billion oz of investment gold above-ground versus 2.59 billion ounces of investment silver. When regular investors begin to rotate out of increasingly worthless Stocks, Bonds and Real Estate and into precious metals, there just isn’t that much more silver than gold for investors to acquire.”

    Jul 06, 2018 06:33 PM

    Gold tied to Chinese Yuan In SDR

    Jul 06, 2018 06:01 PM

    > Newton Interviews with Dustin Angelo $ANX

    by @Newton on July 6, 2018

    Dustin Angelo: “The reason for the increased bid is that we have a concern with this private placement that Maritime is trying to do. We feel it’s a defensive tactic. We believe that we can offer a compelling alternative to that. By the way we’ve structured our latest press release and discussion about this to the market is that we’re asking these investors to not participate in this private placement because it’s a defensive tactic. At the same time, we feel it’s a better offering for the entire shareholder base versus these few investors who are getting some cheap stock.”

    “We can offer a premium to the entire Maritime shareholder base. We thought it was compelling to increase our bid in order to make that more forceful. We also believe that there’s a very good combination here of the two companies putting together a substantial operating base on the Baie Vert Peninsula, where we have existing infrastructure, production, and a team with experience. We have a 15-plus years of talent capacity.”

    “Maritime has the Hammerdown project that can supplement what we’re already doing. Then, both companies also have exploration properties along the major fault system along the Baie Vert Peninsula, so you have very compelling potential project where we could be producing 50-60 thousand ounces a year out of this area with long-term potential from the exploration assets. It is important to consistently generate cash flow for a long period of time and we already generate significant amount of cash flow at material with gram and a half gold; imagine if we put material through that mill with seven or eight grams per tonne from Hammerdown! Everybody stands to benefit from that.”

    “We’re trying to put forward our best offer and give the shareholders of Maritime the opportunity to participate in in this combination, which I think will do a lot of a lot more good than Maritime going on it’s own.”

    Jul 06, 2018 06:55 PM

    The XAU is up 16% versus gold since the March low and is ready to significantly add to that gain…

    XAU:GOLD weekly

    Jul 06, 2018 06:05 PM

    Important USERX breakout:

    Jul 06, 2018 06:20 PM

    GOEX looks good:

      Jul 06, 2018 06:33 PM

      I’m in for again for another rally…have been in for a week now.
      Couple of my ASX listed Juniors have already popped 10+ % on Friday.
      Will we finally break through for a new Bull run this time?
      I don’t know?
      I am just betting that I will make some money as we head towards it by booking profits on the way up.
      No more… less.