Tag: market

Market Wrap-Up for Jan.26 (ROK, BA, COP, ABT, DD, more)

I’m sure most people could have written the script we heard last night on what the U.S. needs to do to turn things around. The problems are obvious (lack of jobs), but the solutions are not. Unfortunately the problem with politicians is that most of the time, they recant the issues we already know – get the standard applause when they say things need to change – but rarely offer up any solutions. I find it fairly comical how the mood shifts occur and all of a sudden what the President is saying is good for the market. I’ve got news for everybody: the market already expected what the President was going to talk about. Folks, we have gone from Dow 6600 to Dow 12,000 in a matter of 20 months. What, you didn’t think the President would get business-friendly? I have never met a politician that hasn’t changed his/her stripes to get on the right side of the track when their political career is on the line. If you toughed out the bear market by just putting capital into names that were still on our recommended list at the time, your returns would be unbelievable right now. Despite the recent rally, we are still looking for more buying opportunities going forward. The job of putting capital to work never stops and neither does our job in finding the best dividend stocks for your investment portfolio. I remember my baseball coach yelling at one of the kids at our team that loved to get on base by just watching pitches and walking. If you don’t swing the bat, you’ll never know how special a player you can become, and that holds true for investors too! Sitting in cash is the equivalent of just taking walks. Don’t worry about getting an uptick the minute you buy shares, or waiting for that magical perfect entry point. Just get back in the game already! Speaking of swinging the bat, we added two new names to our recommended list today (there have been a total of six new names added this week). Be sure to check the link below for the names in case you didn’t read the e-mail alert we sent out earlier. The markets briefly touched over Dow 12K on the back of the State of the Union euphoria as well as the Federal Reserve deciding to leave rates once again (certainly …

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Time to Buy Gold Stocks…Again

Filed in Australian Gold, currencies, featured, Gold, Gold Miners, miners, o by on January 26, 2011 0 Comments

Gold stocks are seen as relatively cheap in this essay with reference to the Market Vectors Gold Miners ETF and declining fain the the paper monetary system. … Western central banks are trashing their own currencies at unprecedented rates , while Eastern central banks are slowly tightening policy and accumulating gold bullion . If current trends in government spending and central banking continue, gold could soar to multiples of its current price. …

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Market Wrap-Up for Jan.25 (KMB, VZ, HOG, AXP, JNJ, MMM, more)

Filed in dividend, earnings, G 20, Gold Investment, lead, Lear, o, Tegra by on January 25, 2011 0 Comments

We are getting more data on housing today, and essentially nothing new has come to light. The latest numbers are finding single-family home prices fell for a fifth straight month in November. At some point, business television will lose the emphasis on the importance housing will play in the current economic recovery. Unfortunately for us, Dow 12K is starting to get on the radar for the pundits, as if it really matters. There is a bit of a new vibe when it comes to the American dream of owning a home. Increasingly, Americans are disregarding the home as an integral part of their nest egg, opting instead to rent. There’s still money to be made in buying and selling real estate, but for the average Joe, the roadblocks to owning real estate have gotten much bigger with much stricter lending standards. Many banks are actually reverting back to requiring 20-30% down payments to consider a buyer “serious.” I stick to the idea that if you are looking to reap money out of buying a property, focus on multi-family units where you can take residence and have the tenant help pay for a piece of your mortgage note. Just be ready to be a landlord — it’s not for everybody. Some of my relatives and friends have been very successful with this strategy, eventually moving on to buying larger multi-family properties. It makes sense to start small at first, though. There’s no sense in buying something too big unless you’ve tasted life as a landlord and can stomach it on a larger scale. This morning, we added two more dividend names to our “Best Dividend Stocks” List . Be sure to check out …

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The Evils of the Drug War

Filed in BP, deflation, o, silver, ubs by on January 21, 2011 0 Comments

Most everyone is familiar with the disastrous consequences of the war on drugs: drug gangs, drug lords, drug suppliers, gang wars, muggings, robberies, thefts, corruption of judges, prosecutors, and law-enforcement officials, murders, assassinations, overcrowded jails, asset forfeiture, and on and on. The fact is that nothing good is produced by the war on drugs. All the results are bad. If you have any doubts, just ask the people of Mexico, who have experienced the unbelievable number of 30,000 drug war deaths in the last 3 years alone. Making drugs illegal causes the price to increase, which motivates suppliers to enter the black market to make money. The state gets angry over this economic phenomenon, imposing harsher penalties and more brutally enforcing the laws. That causes prices to go up even more, which motivates more people to enter into the market as suppliers. Ultimately, the black market price gets so high that ordinary citizens are lured into the market in the hopes of scoring big financially. All the bad consequences of the drug war, however, are not the primary reason for why we should legalize drugs. Freedom is the primary reason to legalize drugs. When the state has the power to put people into jail for ingesting a non-approved substance, there is no way that people in that society can be considered free. A person is sitting in the privacy of his own living room. He decides to smoke marijuana, snort cocaine, or inject himself with heroin. The state — e.g., the members of Congress, the president, the DEA, the Justice Department — claim the authority to punish the person for doing that. But it’s that person’s mouth, it’s his body, it’s his health. Alas, not under terms of the drug war. The state says: We own you, we control you, we regulate you. You do as we say with respect to what you put into your mouth, or else. How can that possibly be reconciled with fundamental principles of freedom? A society in which freedom is genuine is one in which people are free to engage in any activity, so long as it is peaceful and non-fraudulent. That includes, at a minimum, conduct that could be considered self-destructive. You want to smoke? That’s your decision. You want to drink? That’s your decision. You want to ingest other drugs, no matter how harmful? That’s your decision. That’s what freedom is all about — the right to live your life the way you want, so long as you don’t initiate force or fraud against others. Unfortunately, statists take an opposite approach. They say that every person ultimately belongs to society and, therefore, can be controlled and regulated by the state for the benefit of society. Since a person taking drugs is harming society, the collectivist argument goes, the state can send him to his room when he is caught violating drug laws, as much as a parent can do so to a child who violates rules on what he should and shouldn’t put into his mouth. Most everyone now realizes that government officials benefit tremendously from the drug war, just as drug lords and drug gangs do. There is the ever-burgeoning business of asset forfeiture, including against innocent people, which is a way that the state helps fills its coffers without going through …

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2012 Housing Recovery

Filed in BP, Debt, economy, Gold Market, inflation, Lear, o by on January 20, 2011 0 Comments

The National Association of Homebuilders Chief Economist David Crowe just forecast 575,000 housing starts for 2011 — a 21% jump over the 475,000 starts of 2010. (Those numbers are based on this delirious idea that the U.S. jobless rate won’t get worse than 9.4% and on job growth of 200,000 jobs a month.) The National Association of Realtors’ chief economist, Lawrence Yun, just forecast 716,000 housing starts this year on sustainable job growth, the increasing population, and continued low interest rates driving construction. That’s great news if the existing supply burned down. Bulldoze the supply, rebuild the homes, and those numbers look great. Fannie Mae believes “home prices probably will start to gain in 2011’s third quarter and rise 0.6 percent for the year, the first annual advance since 2006.” They also expect housing starts to increase 17.3% this year, hitting 710,000. I’ll be sure to heed the well-researched “guess” of Fannie Mae, that respected bastion of real estate know-how. Was there some sort of gas leak? These predictions are the stuff of delirious daydreams. And no one’s buying it— especially not the homebuilders: The NAHB said early Tuesday its confidence index, which measures builder perceptions of current single-family home sales and sales expectations for the next six months, came in flat at a reading of 16 in January, matching expectations according to consensus estimates listed on Briefing.com. Any reading below 50 indicates poor sentiment. The index has not been above 50 since April 2006. The index’s components include current sales conditions, sales expectations and traffic of prospective buyers. The first two components were unchanged in January at readings of 16 and 25, respectively, while traffic of prospective buyers edged up a single point to 12. Lennar Corporation and KB Home don’t see improvement in housing, either — not with the reality of higher unemployment and mounting foreclosures that’ll discourage buyers for months to come. Truth is, w ith a glut of properties still on the market and more Americans heading to the poor house on imbecilic inflationary actions of the Fed, adding more glut to the market and/or assuming that housing prices will appreciate is delusional, plain and simple. I’m also assuming the large backlog of foreclosures along with the backlog of non-distressed properties — held back for an improving market — will only glut the market much longer than any one realizes. Prices only stabilized a bit in 2010 because of the tax incentives and lower interests rates. Demand was simply pulled forward. The decline in housing prices that should have happened in 2010 were pushed to 2011, 2012, and beyond. To sustain home prices, you have to wait until demand meets supply. And builders know this. It’s why they’re not rushing out to build a million and a half homes this week. …

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Gold Stocks, GDX Steady, Sunridge Surges 8.0% – Marketcut …

Filed in African Gold, Gold, Gold Miners, miners, o by on January 19, 2011 0 Comments

GOLD STOCKS NEWS – Gold stocks held firm Wednesday, with the Market Vectors Gold Miners ETF (GDX) rising $0.12 to $55.93 in morning trading. The modest gain in gold stocks and the GDX came as gold bullion rose $3.76 to $1372.08 amid …

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The Big Picture for the Week of January 16, 2011

Filed in BP, o, silver by on January 15, 2011 0 Comments

The US market is off to a strange start in 2011 continuing a nice run that started months ago. At the same time the economic data seems to point more toward malaise in terms of jobless claims, retail sales, certain components of the CPI and just about …

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Should We Be Wary of Tech Stocks?

Filed in lead, New Gold, o, South African Gold, Spot Gold by on January 6, 2011 0 Comments
Should We Be Wary of Tech Stocks?

Filed under: Forecasts , Internet , Indices , Technical Analysis , Smartphones , Technology The past year was spectacular for tech stocks. But this is a new year. Are we going to see the same dynamics? The same gains? Those are the questions analysts are pondering. First off we have the technicians. They use indexes, charts, graphs and other technical tools to make their calls on the market. One favorite index is the Philadelphia Semiconductor Index, dubbed SOX. It often is a leading indicator for where tech stocks are headed. For the past month, the index has stayed near the 420 level. That has become the overhead resistance point. Technicians argue that the 420 to 422 level must be breached and the market hold above that level for the rally to continue. Otherwise we could see a pull back. Continue reading Should We Be Wary of Tech Stocks? Should We Be Wary of Tech Stocks? originally appeared on BloggingStocks on Thu, 06 Jan 2011 10:20:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Market Wrap-Up for Dec.28 (GM, MCP, REE, more)

Filed in commodities, dividend, economy, General Motors, Gold, Gold Investing, lead, o, silver by on December 28, 2010 0 Comments

As I mentioned yesterday, we are seeing lots of trading activity in stocks that have a bit of a speculative tone to them this last week of the year. Why are we noticing it more? Because there are many retail investors home the last week of the year (vacation time for many) and starving for action. The rare earth stocks had a crazy day of trading (MCP, REE) on news China is trimming exports of rare earth supplies. The stocks rallied big early on, but word of production delays made both names tumble off the intraday lows. You have to remember that these companies have yet to make a profit and are highly volatile trading instruments. As for other news on commodities, gold, oil, and silver are moving higher as well. I worry about the effects ramping commodity prices will have on corporate profits as the economy tries to stabilize further into 2011. Companies are not hiring now while things are going well, so what will happen if commodity costs eat into margins. The bounce-back in the jobs market is still a concern for me, because at some point, the ability for the market to ignore this key fact will certainly be tested. Everyone is clamoring for housing prices to bounce, but data out this morning paints a continued ugly picture. The S&P/Case-Shiller index of property values fell 0.8 percent from October 2009, the biggest year-over-year decline since December 2009, the group said today in New York. Economists had only expected a 0.2 percent drop. I still see homes as mostly vehicles for people that are looking for a place they want to live. The old-fashioned way and most reliable way to make money in real estate is to buy income-producing properties where the numbers work and you are actually making money each month (rents cover all the expenses and you can put some money in your pocket). Wall Street analysts all put in a good word for General Motors ( GM ) today as many initiated positive ratings following the auto manufacturer’s recent IPO. December has been a solid month for the market with very few down days. As a matter of fact, the S&P has closed higher 16 of the 19 trading sessions this month. Volume has not been as strong as previous months, so take that as a bit of caution as the new year gets set to roll in. A pullback in January would certainly be welcome for some of our higher-yielding recommendations. It would be great for investors to get into high quality dividend names at even better entry points. The key to building long

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Sell, Sell, Sell

Filed in BP, earnings, economy, Gold, GOld juniors, mongolia, Netflix, o, sov by on December 20, 2010 0 Comments
Sell, Sell, Sell

Here it is, the end of another fantastic year. The NASDAQ is up 26% over the last 52 weeks, the S&P500 is up 24%, and the DJIA is up 20%. Heck, it’s been a great year at Crisis & Opportunity as well. Readers have seen gains of 759% in a small Mongolian oil company, 52% on a cruise ship in a week, and 251% gains on a safety syringe maker. Lets face it: greed is back. The speculators have returned and the fast money is seeking risk. Froth is back There is no better example of this froth than the hot Chinese IPO’s Youku.com. Called the “Netflix of China,” it returned 161% on the first day. All sorts of companies are running. New Energy Technologies (NENE.OB)— one of Jeff Siegel’s picks — went from 0.31 to $3.29 in a month. And lastly, one of my garbage stocks, Madcatz (ASE: MCZ), a purveyor of video game accessories, shot up 250% in a few weeks. That type of momentum chasing doesn’t happen in bear markets; in fact it’s more indicative of a top. I’ve written before that this market is setting up just as it did in 2004. We are three years after a massive market correction. The Fed and Congress are doing everything they can to shoot money into the economy. We’ve just had a major stock market rally similar to 2003, and the vast spectrum of negatives from housing to jobs seems to be getting better… Here is what 2004 looked like: There’s a chart that will give you indigestion on the way to a 10% gain. Every rally was sold hard, blowing out the longs. Every dip reversed strong destroying the shorts. Double dip was the dominant fear. And every sell-off got run over by easy money from the Fed. Looking at this chart, there is no easy way to tell when a …

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Rude awakening of the sleeping Giant

Filed in BP, Debt, euro, Gold, o, target by on November 26, 2010 0 Comments

Euro has clearly broken 1.329s or the low it had posted earlier this week nonetheless this break to us is only like an earth quake which took place far off land and in the deep ocean and therefore the land dwellers are breathing a sigh of relief that they escaped this major “Quake” or else it would have been a major catastrophe. Unfortunately the “sigh of relief” seems short lived the seas start reseeding [A pull back expected in Euro from lows of today to near break point of 1.329s] and this being a sign the “wave watchers” raise their alarms of a possible tsunami to hit land and that is when major damage is done. This “Tsunami” however, shall take enough time to clear the weekend and early hours of trading in Asia before the seas start to swell up to unleash its fury. As we have stated yesterday and day before in our articles that markets are following the classic rule of buy on rumor and sell on fact, today’s drop to us was a surprise for the market as at first the Deputy Governor of Spanish Central Bank Mr. Ariztegui somewhat disturbed the sleeping giant by his statement that “It is necessary for Spain to continue restructuring and informing” but as if that wasn’t enough that later Spanish Finance Minister Mr. Salgado also raised concerns of the street with his view on Spanish debt auctions. The above statements of the gentlemen are now known to the market therefore no ambiguities are left and hence the Euro will digest it and forget about it as it has awaits a much bigger announcement regarding the bailout package of Ireland over the weekend therefore Euro should trace back to levels near to the break point and settle around 1.337s for the day. We are sticking with our lowered target of Euro at 1.28s for this coming week and the pull back that we’d see in Euro would do Euro good on technical terms as a consolidation is required for a hard break down to 1.28s and currently Euro is on the sides of being slightly oversold. Now, coming to Cable and the battle of troy or 1.57s was finally lost. As we had stated yesterday that cable would continue to move sideways to gain some much needed meat [consolidation, as cable was partially oversold] to break the untested support of 1.57s, well that is precisely what happened and today Cable breaks the bottom. The break only took place today however; we had already on November 24th stated the downside of GBP lies to 1.54 and we stand by it even now. The culprit is none other than Green back as the Dollar Index has smartly risen over 79.6 now and we in our article [Days of Benefactors are now numbered] dated November 23rd stated “The U.S Dollar Index is bouncing back from low 78s and at the moment there seems no hurdle then in its path to stop it from breaking over 79.6 which shall give rise to a move upwards to

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