Friday, October 31, 2014

Is Ebola About To Get Worse? Lakeland: LAKE Hazmat Suit Orders Go Exponential, Surpass 1 Million

Almost exactly a month ago, long before the Texas Ebola fiasco, when virtually nobody had heard of a small company out of Ronkonkoma, NY called Lakeland Industries and whose only product is "industrial protective clothing for industry, municipalities, healthcare and to first responders" i.e., Hazmat suits, we asked "i) who will get sick next and ii) how bad could it get?" For the answer we focused on the recently announced order of 160,000 Hazmat suits by the US State Department which had come at a time when the CDC was urging everyone that there is nothing to fear and that Ebola is under control. Not surprisingly, shortly thereafter the Ebola situation promptly escalated and led to not only the first Ebola death and Ebola transmission on US territory, but also the first Ebola infection in New York City.

Fast forward to today when shortly after the close, and minutes after it announced the completion of another $11 million follow on offering, Lakeland surprised everyone, and especially those who are short the stock, when it released the following "Update on Business Activity Relating to Ebola Crisis" in which it announced that it has, by now, received a stunning 1 million Hazmat suit orders and rising exponentially. (more)

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CORN: Simple Economics Say: Buy This Commodity Now

Growing up I swore to myself that I never wanted to be a rancher or farmer -- moving irrigation pipe, caring for cattle, bucking bales of hay -- needless to say the work was strenuous.
But the older I get, the more I find myself yearning for the back-breaking work and solitude that comes with the gig. Luckily, I still have a close connection to it. Growing up in a tiny village in the northwest, ranching and farming is -- next to mining -- probably the largest employer. And my father keeps a pulse on the agriculture business, as it directly affects his business.
So I do my best to pick his brain about happenings in the agricultural business. And when we recently talked I was particularly interested in what was going on in the corn and wheat sectors. What he told me was exactly what I wanted to hear...
Right now, there's a ton of supply in the corn and wheat markets. Thanks to exceptional growing conditions this year.
In its most recent report, the United States Department of Agriculture (USDA) announced corn production came in at a record-high 14.5 billion bushels. And this is how it's been all year... This news has caused corn prices to plummet:

It was this freefall that caught my attention. That's because I think conditions are ripe for a rebound in both corn and wheat prices -- especially for corn. And it's all thanks to an aspect of commodities investing that I doubt many investors know about. But if you can grasp the idea, you'll make a killing. (more)
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Weekly Gold close setting up to be Important / By Dan Norcini / October 30, 2014
In looking over this intermediate term chart, and surveying its current bear market, I have noticed that since its peak near $1900 some three years ago, the metal has only ONCE managed to CLOSE out the week BELOW $1200. See the arrow…..

The close this week will therefore be critical in determining whether or not we are going to be more downside follow through and another test of the key $1180 level or if we are going to sit and grind sideways for a while longer yet.
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The GEO Group Inc (NYSE: GEO)

The GEO Group, Inc. provides government-outsourced services specializing in the management of correctional, detention, and re-entry facilities, and the provision of community based services and youth services in the United States, Australia, South Africa, the United Kingdom, and Canada. It operates through four segments: U.S. Corrections & Detention, GEO Community Services, International Services, and Facility Construction & Design. The company owns, leases, and operates a range of correctional and detention facilities, including maximum, medium, and minimum security prisons; immigration detention centers; minimum security detention centers; and community based re-entry facilities.
Take a look at the 1-year chart of GEO (NYSE: GEO) below with added notations:
1-year chart of GEO (NYSE: GEO)
GEO has been trading sideways for the last 3 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. GEO’s rectangle pattern has formed a $38.50 resistance (red) and a $36 support (blue). At some point the stock will have to break one of the two levels created by the rectangle pattern.

The Tale of the Tape: GEO is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $36, or on a breakout above $38.50. The ideal short opportunity would be on a break below $36.
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One of the Best Trading Setups I've Seen Since 2008

Times are tough for junior mining companies...
The "Dow Jones Industrials" of junior miners – the S&P/TSX Venture Index – is down around 23% from its August highs.
Many junior mining companies are struggling to survive. And there's likely more downside ahead.
But the reason why is creating a great opportunity for speculative traders to make a lot of money...(more)
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Thursday, October 30, 2014

Chevron Corp. (NYSE: CVX): Time to Buy This Natural Gas Stock

Now's a perfect time to buy into our favorite natural gas stock, as another part of the energy sector continues to slump…
You see, while energy stock bears point to the dismal performance of oil stocks as a reason to leave the sector entirely, they're wrong.
It's true oil stocks have been hit hard. Oil prices have tanked since June, down 21%. WTI and Brent crude both hit multi-year lows this month.
U.S. oil drillers like EOG Resources Inc. (Nasdaq: EOG) and Continental Resources Inc. (NYSE: CLR) have fared poorly despite surging production. Those two stocks are down 18% and 26% respectively from summer highs. Even Exxon Mobil Corp. (NYSE: XOM) stock is down 9% since June.
But while prices dip in the crude oil market, Money Morning's Global Energy Strategist Dr. Kent Moors predicts natural gas prices will climb as we reach the winter months.
"With natural gas, the NYMEX price was above $4 per 1,000 cubic feet (or million BTUs) in early October," Moors said. "As we move into a winter heating cycle, that should push prices closer to $4.50."
Natural gas at $4.50 would be an increase of nearly 23% from today's price of $3.65 per million BTUs. (more)

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Soybean Meal Heads for Biggest Monthly Gain in 40 Years

Freight trains aren’t getting food to chickens fast enough, sending prices for livestock feed made from soybeans toward the biggest monthly gain in 40 years.
Soybean-meal futures have jumped 33 percent this month as meat prices close to record highs spur feed demand and shipping delays tighten supplies from Midwest processors. Weekly train speeds fell last week to the lowest since April 2010 while waiting times at terminals rose to the highest since July, data from the Association of America Railroads show. (more)

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Drilling Deep for Oil: Alpert, Barnett, Katusa, and Verleger

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Why Lower Gas Prices Are NOT “Bullish Indicators”

by James Rickards
Daily Reckoning

[Ed. Note: Our resident currency maven, Jim Rickards was recently interviewed on RT's Boom and Bust by Erin Ade, to discuss supposed "bullish indicators" in the U.S. economy, the need for another financial crisis in Europe, and why central banks are mostly "impotent." Below is a summarized transcript on some of his main points...]
I don’t think the data is bullish at all.
Lower gas prices put more money in consumers’ pockets.
But there’s an alternative to spending… Which is saving or reducing debt – which is the same thing.
I don’t consider these bullish indicators. They tell me an economy is running out of steam.
Continue Reading at…
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Eric Hadik – We Are at The End of a 40 Year Cycle

from Financial Survival Network
Eric S. Hadik is a trader & analyst who has been intimately involved with the markets for nearly 25 years. His first introduction to technical analysis came through Fibonacci Mathematics and the Elliott Wave Principle and he began trading in 1982.
However, it was not until he discovered the works of W.D. Gann and Gann’s integration of Biblical and natural cycles that Eric knew he had discovered his life’s passion and purpose. We spoke with him about the significance of cycles and he related to us about the key 40 year cycle and it’s connection to the history of monetary debasement in America. A must listen!
Click Here to Listen to the Audio
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No Plans for Normalization: Fed Ends QE, Will Hold Rates Low for “Considerable Time”, Will Reinvest Proceeds / Mike “Mish” Shedlock / October 29, 2014
Inquiring minds may wish to slog through today’s FOMC Press Release on Monetary Policy but it’s really not worth the time it takes to read it.
Here are a few details, generally expected
  • The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program.
  • The Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate.
  • The Committee anticipates, based on its current assessment, that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program this month, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.
  • If incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated. Conversely, if progress proves slower than expected, then increases in the target range are likely to occur later than currently anticipated.
  • The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.
Reinvesting Principal Payments
The Fed also released a Statement Regarding Purchases of Treasury Securities and Agency Mortgage-Backed Securities.
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Wednesday, October 29, 2014

Four Tech Stocks to Buy at "Stupid Cheap" Prices: BITA, SLCA, FLT, AMBA

It was Oct. 19, 1987 – Black Monday – and the stock market had just crashed. At the time, I was an analyst in the Financial District in San Francisco.
My then-boss called me from Wall Street. And he sounded like he was ready to sell everything.
But I had other ideas.
After all, if Macy's holds a 25% off sale, shoppers rush down in droves. So why do so many investors panic when the market corrects?
By doing so, they miss out on great bargains.
We're not doing that. We're going shopping…(more)

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JC Penney Company Inc (NYSE: JCP)

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., sells merchandise through department stores in the United States. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings, as well as provides various services, including styling salon, optical, portrait photography, and custom decorating.
Take a look at the 1-year chart of Penney’s (NYSE: JCP) with the added notations:
1-year chart of Penney's (NYSE: JCP)
After trading mostly sideways from March through July, JCP took off to new highs. Unfortunately, the stock fell off a cliff after that. You will notice that since March the stock has found support at $7 (blue) whenever that level has been approached. Now the stock is almost there again. Traders should be able to expect some sort of bounce, but if not, new lows for the year will follow.

The Tale of the Tape: JCP has a key level of support at $7. A trader could enter a long position at $7 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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Should You Buy Steel Stocks Now?

After enjoying sturdy growth for most of the past decade, the steel industry suffered a setback in 2008 due to the recession, as consumers started utilizing existing inventories rather than buying new stock. However, the industry turned around in late 2009 and continued to grow thereafter, in tandem with global economic recovery.

Demand for steel benefited from the spurt of growth witnessed in the developing economies that helped counter the sluggishness in developed economies. Asia -- particularly China -- continued to act as the principal growth driver. (more)

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Bobby Casey: Diversify Your Portfolio Now

Bobby Casey, a renowned speaker on anarcho-capitalism, free-market economics, and offshore businesses joins Stansberry Radio
Why is now the time to internationally diversify your portfolio?

Listen as Bobby shares his view on how to achieve true freedom by internationalizing your life using the "the multi-flag approach."

Bobby talks about the implications of FATCA, the Foreign Account Tax Compliance Act. He considers it one of the worst pieces of legislation ever written... that few people know exists. Find out how this new law forces all international banks to become part of the IRS's worldwide police force.

Bobby also tells the listeners what he believes are the best ways to diversify their portfolios. He emphasizes the importance of:

·         Owning foreign real estate
·         Why investors should use the "Buffet Approach"
·         Geo-political diversification
·         Why everyone should own hard assets
·         Having a second passport
·         How is becoming a great business for international investors

Although it's becoming much more legally difficult to invest internationally, it's not too late.

This is a good show that will make you think about how you diversify your money and keep it safe. (click here for audio)
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Tuesday, October 28, 2014

Three Reasons Why You Should Expect a 30% Market Meltdown

You’re too late to avoid the bear market, so get ready
by Mark D. Cook
Market Watch

In a commentary for Marketwatch just over two months ago, I predicted that the U.S. stock faced at least a 20% correction. The signals now point to a 30% downturn.
This recent market volatility VIX, -2.54% is just the beginning. The declines that corrected prices more than 10% in both the Russell 2000 Index RUT, +0.21% and the Nasdaq Composite Index COMP, +0.69% encompassed the majority of the market, and these stocks have begun their descent. Meanwhile, both the Dow Jones Industrial Average DJIA, +0.76% , containing 30 stocks, and the S&P 500 SPX, +0.71% have yet to correct 10%, but historically they are the last to fall.
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What Happens When You Run Out Of VIX To Short? / by Tyler Durden on 10/27/2014 15:23
You just short some more…
Since December 2013, there have been more shares short than shares outstanding in VXX – the VIX ETF.

Currently, there are 2.5 times more shares short than shares outstanding… as oustanding collapses to six-month lows as shorts surge to a new record high…
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Why Biotech Stocks are Screaming “Buy Me” Right Now

by Greg Guenthner
Daily Reckoning

That bright neon sign you’re looking at are biotech stocks flashing, “Buy me!”
So put down your morning joe. Go ahead, do it. And ignore all incoming e-mail for the next few minutes. Because the biotech breakout has arrived — and it can make you a bundle over the next few months.
That’s right. Forget about this month’s stock roller-coaster ride. Yeah, sure, it was painful for some. But it’s time to hop aboard biotech…
I can see you there right now, arms crossed, getting up in my grill: ‘Oh, yeah, Guenthner? I just lost a bunch of dough on stocks. You think my wife’s gonna let me buy biotech now?’
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Sterne Agee Warns, The Correction Hasn’t “Fixed” Anything / by Tyler Durden on 10/27/2014 18:21
The 76% retracement S&P 500 rebound was so quick and so steep that Sterne Agee’s Carter Worth warns it “suggests that the mentality that fosters complacency and excess in the first place, remains in effect. And that means, of course, that nothing has been corrected.”
Low volume bounce squeeze “fixed nothing”…
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2008, Part II? – Only Best of the Best Miners + Cash

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Monday, October 27, 2014

Semtech Corporation (NASDAQ: SMTC)

Semtech Corporation and its subsidiaries design, develop, manufacture, and market analog and mixed signal semiconductor products. Its products lines include signal integrity and timing products, such as a portfolio of optical communications, broadcast video, active cable transceiver, and backplane products used in various enterprise computing, industrial, communications, and high-end consumer applications; and proprietary advanced wired communication and ultra-high speed serializer/deserializer products for optical transport communication used in various communications and industrial applications.
Take a look at the 1-year chart of Semtech (Nasdaq: SMTC) below with added notations:
1-year chart of Semtech (Nasdaq: SMTC)
SMTC has been trading in a large, sideways range for the last 10 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. SMTC’s rectangle pattern has formed a $28 resistance (blue) and a $22 support (green). At some point the stock will have to break one way or the other.

The Tale of the Tape: SMTC is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $22, or on a breakout above $28. Short opportunities would be on a rally up to $28, or on a break below $22.
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Charts Say Semi Stocks Are Headed for a Deeper Decline

Semiconductor stocks fell sharply from their mid-September highs before rebounding in the past few trading sessions along with the oversold bounce in the broader market. But they now look overbought in the near to intermediate term, presenting traders with an opportunity to make quick profits on the short side.
When markets get volatile, it pays for traders to reduce their average position size, widen stop-losses and profit targets, and generally try to play the swings in the broader market as opposed to focusing on individual stocks.
When it comes to volatile sectors, such as semiconductors, trading an ETF rather than a single stock can be a good idea regardless of broader market volatility.
Looking at the weekly logarithmic chart of the Market Vectors Semiconductor ETF (NYSE: SMH), note that the recent sell-off took it right back down to its late 2008 uptrend line.
SMH Weekly Chart
A closer look reveals that upside momentum, as represented by the Relative Strength Index (RSI), topped in July while price continued to rise into the September highs. This type of multi-month negative divergence often doesn't end with a quick sell-off. Rather, the selling typically occurs in at least two waves.(more)
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This Week in Money with Guests – Ross Clark, David Gurwitz, Marin Katusa, Chris Marchese

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Home Prices Drop in 69 of 70 Chinese Cities; Did the Pool of Greater Fools Run Out?

by Mike “Mish” Shedlock
MISH’S Global Economic Trend Analysis

China eased purchase restrictions last month ending its four-year campaign to contain home prices. And what a ridiculous campaign it was. Prices are down less than 1% this month and less then 1% year-over-year.
Bloomberg reports China Home-Price Drop Spreads as Easing Doesn’t Halt Fall.
Prices dropped in 69 of the 70 cities in September from August, the National Bureau of Statistics said in a statement today, the most since January 2011 when the government changed the way it compiles the data. They fell in 68 cities in August.
Continue Reading at…
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Infoblox Inc (NYSE: BLOX)

Infoblox Inc. develops, markets, and sells automated network control solutions worldwide. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. Infoblox Inc. sells its solution through distributors, integrators, managed service providers, and value-added resellers, as well as a field sales force.
Take a look at the 1-year chart of Infoblox (NYSE: BLOX) with the added notations:
BLOX tries to break $15 again
BLOX peaked back in January at $39 and lost over 70 percent of its value from there. The stock seems to have bottomed out over the last 5 months, and over the last two the stock has commonly hit a very important level of resistance at $15 (red). If the stock can break above $15 higher prices should follow, most likely a run back to the $17.50 level (blue).

The Tale of the Tape: BLOX has a key level of resistance at $15. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $15.
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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
10 am Pending home sales     -- -1.0%
8:30 am Durable goods orders Sept.   0.2% -18.4
9 am Case/Shiller home prices Aug.   -- 6.7%
10 am Consumer confidence index Oct.   87.0 86.0
2 pm FOMC announcement        
8:30 am Weekly jobless claims Oct. 25
281,000 283,000
8:30 am GDP Q3   3.1% 4.6%
8:30 am Employment cost index Q3   0.5% 0.7%
8:30 am Personal income Sept.   0.3% 0.3%
8:30 am Consumer spending Sept.   0.1% 0.5%
8:30 am Core PCE price index Sept.   0.1% 0.1%
9:55 am Consumer sentiment Oct.   86.4 86.4
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Saturday, October 25, 2014

Crude Has Likely Hit Rock Bottom

In the past, we’ve discussed at length the structural problems facing Crude. So the pressure the energy markets are under, both from the demand and supply sides, should come as no surprise. This double whammy to the Crude market is not likely to be resolved overnight; demand-supply issues require time to work through a market.
Through hydraulic fracking and a massive influx of investment capital, the US has again become a major oil producer. But it’s the speed with which new supply from the US has come on line that has taken the market by surprise and rocked prices.
The 4 million plus barrels of extra oil that the US is suddenly producing is causing a problem for exporters like Saudi Arabia, who now need to find new markets for their oil. Most of the world’s oil is not sold in futures contracts for delivery one to three months out. Rather oil contracts are long term in nature, made over 1 to 3 year periods. And the competition for existing oil markets has been fierce, forcing suppliers to drastically cut their prices relative to spot. (more)

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Meanwhile, This Is Who Is Quietly Buying All The Cheap Oil

from Zero Hedge

With the US Shale Oil industry up in arms, Venezuela screaming, and Russia awkwardly quiet (as the Ruble slides with the falling oil price stabilizing domestic inflows), the ‘secret’ Saudi-US oil deal that pressured prices for crude down to $80 (18-month lows today) has ‘hurt’ a lot of the world’s producer nations. However, as Bloomberg reports, there is one nation that is very grateful. The number of supertankers sailing toward China’s ports surged to a nine-month high as over 80 very large crude carriers (VLCCs) – the industry’s biggest ships – sail toward the Asian country’s ports. At an average of 2 million barrels each, the 160 million barrels will help refill China’s 727 million barrel SPR which it started in 2012.
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2015 Natural Gas Forecast

You've got one more week to become a gas bull.
I'd give myself the same deadline if my readers and I weren't already expecting a natural gas comeback. Personally, I find it nearly impossible not to have a strong outlook for gas.
Over the last few years, ever since gas prices bottomed out, we've talked about the growing role the fuel is playing in the United States, whether it is against the coal industry or even taking on renewables like wind.
Investors that passed on gas last winter undoubtedly regretted their inaction. But with prices down 25% since last June, is the market giving you a second chance?
I have a feeling the bearish sentiment we've been seeing far too often lately will start swinging the other way. (more)

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Nu Skin Enterprises, Inc. (NYSE: NUS)

Nu Skin Enterprises, Inc. develops and distributes anti-aging personal care products and nutritional supplements under the Nu Skin and Pharmanex brands. It offers skin-care systems and treatment products, including age LOC Galvanic Spa System, age LOC Galvanic Body Spa, and age LOC Transformation anti-aging skin care system, as well as other cosmetic, personal, and hair care products. The company also provides age LOC TR90 weight management and body shaping systems; LifePak; age LOC R2 nutritional supplement; and age LOC transformation daily skin care system. It is involved in the research and product development of aging, including the influence of certain ingredients on gene expression.
Take a look at the 1-year chart of Nu Skin (NYSE: NUS) with the added notations:
1-year chart of Nu Skin (NYSE: NUS)
NUS peaked back in January at almost $140 and proceeded to lose over 70 percent of its value from there. The stock seems to have bottomed out a bit over the last 2 months, and over that period of time the stock has commonly hit a very important level of resistance at $50 (blue). If the stock can break above $50 higher prices should follow.

The Tale of the Tape: NUS has a key level of resistance at $50. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $50.
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