gold & treasury bonds are related Have a inter market approach - how different markets are connected

and doing If position is negative and setup was not your based on your best options then t ime to quit Silver and gold are positively corelated + Jordan uses a combination of technicals (support/resistance and moving average s), valuation ratios (such as price to cash flow, as well as relative ratios per taining to how many ounces of gold/silver a company has relative to its peers), and sentiment indicators (like the COT report) to determine which stocks to buy and when to buy them. + He is also a student of intermarket relationships; for i nstance, he expects gold stocks to bottom, on average, a month before Treasury b onds peak. + He trades from the long side only. + His basic philosophy is to identify "super major bull markets" -- bull markets that are likely to last for a decade or more. The goal is to get in early, accu mulate on dips, and hold for the duration. + Jordan believes these super bull markets last 15 years or more. They can be di vided into three phases: the first phase lasts 5 or 6 years and is characterized by rising valuations and rising earnings; the second phase lasts about 4 years and is characterized by rising earnings and falling valuations; the last phase i s the longest, ends in a bubble, and is marked by sharply rising valuations. + He focuses on stocks valued between 100 million and 300 million, holds them fo r about 9-12 months. Because of how volatile these small cap gold stocks are, Jo rdan believes trading them is necessary. + He notes that every year there are 2-3 corrections of 20% or more in the gold sector; these are the events to trade around. + Be overweight the stocks you are most confident in. Cut the ones you are least confident in quickly when they show signs of failing to meet your expectations or when they diverge from your rationale for entering. + Jordan focuses on the 100mm - 300mm range, although he recommends using warran ts to gain leverage for trading the "blue chip" gold stocks with larger valuatio ns. Franco Nevada (FNV) is one stock we discussed. In the 100mm to 300 mm range, Jordan is still conducting rigorous fundamental analysis, looking for stocks th at are fundamentally sound and undervalued. + Calling the top is always especially challenge, but Jordan is currently expect ing the top in metals to be realized in 2016-2017. He believes we could be on th e verge of entering the third phase of the super bull market in gold, once a new is reached. Katyh Lein trading strategies Focus not on risk/reward setup Focus on high probability setup and strategies Intra day and swing trading Momemtum trading Trend following Break out - have momentum on your side Have stop loss on every order Swing trade - major or crosses Intra day trades - E/U Fundamental - big picture Technical - good entry points + Kathy got her start in forex trading in 1999. She started at JP Morgan in a ro tational program that gave her introduction to many markets, which is how she re alized currencies is something she wanted to focus on. + Kathy identifies herself as both an intraday trader and a swing trader. She is

in and out of positions in the same day for many of her trades; for some of her swing trades she will hold positions for a few days, but rarely more than 5. + Kathy focuses less on risk/reward and more on identifying high probability tra des. + She always places a stop and a limit. + She trades EURUSD the most for her intraday trading, but uses other cross pair s for her swing trades. + She develops a fundamental view, based on how she sees things shaping up over the next week or 2 months, then looks for technical signs that give her the okay to enter. + She is a breakout trader, looking to follow momentum. + She believes news events can serve as the catalyst that validate her fundament al viewpoint, and thus will place trades in anticipation of market reactions to news events that validate her thesis. + She pays close attention to data from China, as it can have a big impact on cu rrency markets. She does not believe China is in for a hard landing. + Kathy views open-ended QE in a positive light, believing it is helping to fort ify financial markets and avoid a crash. The five reasons Bass expects the Japanese government bond market to collapse ar e as follows: 1. Japan has an extremely high amount of debt; it simply cannot be repaid. 2. Interest expense on debt is very high and growing. 3. Contrary to popular belief, Japan is NOT self-funding. The Bank of Japan will need to print more money in the years to come. 4. Japan's demographic crisis has arrived. The country's population is declining , its taxable income is declining, savings rate are declining, and social securi ty payments are rising. 5. The Japanese government is at a loss for how to deal with the problem.