Choose the Best Mining Stocks for Lunar Cycles Trading


As you know, our trading strategy works by capitalizing off of bi-weekly trends and monthly cycles using mining stocks. In order to make big profits and time our actions well, we select highly volatile stocks whose reversals align with lunar phase changes (as explained on Lunar Cycles Trading page).



Even though we trade on a weekly basis, we want our mining stock to be trading in the long term direction of our strategy. If our strategy is buy low and sell high, then our stock should not only be higher in 2 weeks, it should be higher in 6 months. As such, we have no worries if we have to wait before turning a profit. Our mining stock's chart should be an exaggerated replica of the chart of gold and silver. This means that our mining stock should have a cyclical pattern closely identical to gold and silver's cyclical pattern. This is important because gold and silver follow lunar cycles quite well (cycles last approximately one month long and trend reversals usually occur every 2 weeks, on or near key lunar phase changes. Our mining stock should be flexible. When we say flexible, we mean that we want the freedom to buy and sell at will and not all mining stocks fit this category. We use stocks with enough volume whereas we never have to wait in order to buy or sell when we want. Average daily volume for a stock worth $1 to $5 should be well over 250,000. Stocks worth less than $1 should have at least 500,000 in volume.

Proven reserves or proven discoveries make mining companies money magnets. Both represent value for the companies because they have tangible assets, not just a team of geologists, miners, and executives. The acquisition targets are almost always companies that have potential to extract more gold than the big companies can do in the near future.

Companies with several properties in different mineral-rich and stable regions attract more attention. Having significant operations in the following regions often attract more investor attention: Red Lake, Ontario; Bushveld, South Africa; the Andes region of Peru and Chile; the Sierre Madres of Mexico; Northwest China; Northern and Western Nevada; and Western Australia.

Mining companies that produce metals for a lot less than their market cost, are the most profitable companies. For example, if it costs a company $300 per ounce of gold extracted and gold's market price is $900 per ounce, then that company has a huge profit potential (as long as enough gold is mined).

A mining company has necessary operating permits and financing to continue operations. There are literally thousand of mining companies in the world and most of them will never actually extract any gold. Both permits and financing are crucial for operations, without them the companies might cease to exist.

Finally, a quality mining company should have a positive outlook for future growth. Mining companies that have recently begun new undertakings and projects, that have recently made huge mineral intercepts, have recently acquired new mineral-rich properties, or have added to reserves are prime prospects. This positivity factor often outweighs other criteria, much to the dismay of many Wall Street analysts, who only focus on current or past debt and current obligations.

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