Monday, October 20, 2014

Grupo Financiero Galicia S.A. (NASDAQ: GGAL)

Grupo Financiero Galicia S.A. operates as a financial services holding company in Argentina. The company operates through Banking, Regional Credit Cards, CFA Personal Loans, and Insurance segments. It offers financial products and services, including collection and payment services, commercial credit cards, direct payroll deposits, capital market alternatives, foreign trade solutions, and corporate e-banking solutions; financial support and cash management services; foreign trade; corporate debt and securitization transactions; and e-collection and payment solutions to various agencies, municipalities, and universities.
Take a look at the 1-year chart of Grupo (Nasdaq: GGAL) below with my added notations:
1-year chart of Grupo (Nasdaq: GGAL)
Over the last 6 months GGAL has created a key level of support at $12 (red) and that $12 level was also the “neckline” support for the stock’s head and shoulders (H&S) reversal pattern. Above the neckline you will notice the H&S pattern itself (blue).
Remember, patterns such as an H&S need to confirm to have the meaning that they imply. Confirmation of the H&S occurred when GGAL broke below its $12 support.

The Tale of the Tape: GGAL has confirmed a head & shoulders pattern. A short trade could be entered anywhere near $12 with a stop placed above that level. A break back above $12 could negate the forecast for a move lower, thus a long position could be considered instead.
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iBio (IBIO): Our Last Line of Defense Against Ebola?

On October 9, U-T San Diego reported that Mapp Biopharmaceutical enlisted a company to help produce the Ebola drug cocktail, ZMapp.
And widespread speculation was that iBio (IBIO) would be identified as Mapp’s partner.
As a result, iBio’s shares spiked more than 66.6% on Columbus Day.
The Delaware-based biotech company closed the trading day at $2.45, an increase of more than $0.98 from Friday’s closing price of $1.47.
More than 49 million shares changed hands, compared to the three-month average of just over 600,000.
This proves without a doubt that hysteria about Ebola has reached Wall Street.

Don’t Get Caught in This Terror Trap

I’m sure you’ve heard by now that a nurse in Dallas was diagnosed with the Ebola virus after having extensive contact with a patient who later died of the deadly virus.
The news significantly deepened concerns about an Ebola outbreak thas have plagued the United States since late September.
As you can see from the chart below, iBio shares have blasted higher on both Friday and Monday.
Ebola Hysteria Hits New Level Among Investors: iBio (IBIO) Shares Reacting to Ebola Fears
Now, you might be asking what role in the fight against Ebola iBio plays…(more)
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This Week in Money with Guests: Ross Clark, Marin Katusa, Ross Kay – October 18, 2014

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Warren Buffett’s Top 5 Income Stocks: (NYSE:GM),(NYSE:PG),(NYSE:KO),(NYSE:WFC),(NYSE:XOM)

When it comes to stock-picking, there are few investors who have been as successful as legendary investor Warren Buffett.
Many investors have had the bright idea to try and emulate his success by simply adding the same stocks to their portfolio, although they are coming late to the party in most cases.
Warren Buffett certainly likes dividends, but that’s not the primary reason he makes an investment. (more)

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Express, Inc. (NYSE: EXPR)

Express, Inc. operates as a specialty apparel and accessory retailer primarily in the United States. Its stores provide apparel and accessories for women and men between 20 and 30 years old across various aspects of the lifestyles comprising work, casual, jeanswear, and going-out occasions. As of August 27, 2014, it operated approximately 630 retail stores located primarily in shopping malls, lifestyle centers, and street locations in the United States, Canada, the District of Columbia, and Puerto Rico. Express, Inc. also distributes its products through the company’s e-commerce Website,, as well as franchisees Express stores in Latin America and the Middle East.
Take a look at the 1-year chart of Express (NYSE: EXPR) with the added notations:
1-year chart of Express (NYSE: EXPR)
After declining into May, EXPR has traded in a large sideways range. During the May to October timeframe, the stock has also created a key level at $14 (green). You can see how that level has been both a prior resistance and a prior support. Now, the stock has approached $14 again and that could provide another bounce higher.

The Tale of the Tape: EXPR has a key level of support at $14. A trader could enter a long position at $14 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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US Weekly Economic Calendar

time (et) report period Actual CONSENSUS
  None scheduled        
10 am Existing home sales Sept.   5.00 mln 5.05 mln
8:30 am Consumer price index Sept.   0.1% -0.2%
8:30 am Core CPI Sept.   0.2% 0.0%
8:30 am Weekly jobless claims Oct. 18
8:30 am Chicago national activity index Sept.   -- 0.14
9 am FHFA home price index Aug.   -- 4.4% y-o-y
9:45 am Markit flash PMI Oct.   -- 57.5
10 am Leading indicators Sept.   -- 0.2%
10 am New home sales Sept.   455,000 504,000
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Saturday, October 18, 2014

In Spite Of Bounce, This Is How Horrific The Plunge Could Get

from King World News
In spite today’s bounce, a 50-year market veteran warns just how violent things can get to the downside.
By Art Cashin Director of Floor Operations at UBS
October 17 (King World News) – “On this day (+2) in 1987 (that’s 27 years ago, if you are burdened with a graduate degree), the NYSE had one of its most dramatic trading days in its 220 year history.
It suffered its largest single day percentage loss (22%) and its largest one day point loss up until that day (508 points). No one who was on the floor that day will ever forget it. While it was an unforgettable single day, there were months of events that went into its making.
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Oversold Market Set for a Snapback Rally, but Wait for This to Buy

The S&P 500 is nearing "official" correction territory, with panicked traders sending it down 9% in a matter of weeks. With all medium-term support lines and moving averages now broken, the last of the stops should soon be taken out. When that happens traders should get the chance to pounce on a good oversold bounce.
To be clear, I am not calling for the start of a new major bull market leg. Rather, the S&P 500 is reaching oversold levels, and like a rubber band that has been stretched too far, we could see a violent snapback rally.
For evidence of this, let's turn to the charts.
SPX vs RUT Chart
Small-cap stocks, as represented by the Russell 2000 (red line), have notably lagged in performance all year and were the writing on the wall for observant market participants. After double-topping with its highs in March and July, the Russell 2000 developed a significant lower high in early September, just as the S&P 500 (blue line) crawled to a fresh all-time high, thus flashing a major divergence. (more)
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Stock and Commodity Markets with Dan Norcini

With the kind of week we have just been through, it is certainly a relief to see a bit of "calm" coming back into the markets to close out this wild week. Drawing too many conclusions from the price action is probably not too wise given the fact that there were huge money flows flipping into and out of various sectors as traders were trying to avoid not only getting steamrolled, but in many cases, apparently from what I have seen in the price action of some areas, desperately trying to minimize what no doubt were some enormous losses.
At least the Complacency Index, as I prefer to call the VIX, nudged down somewhat from what was a 22 month high!

The Gold Volatility Index also moved lower today. It hit its highest level this year but compared to the VIX, still looks rather tame by comparison.(more)Please share this article

Handelsblatt: “Four German Banks On The Brink” / by Tyler Durden on 10/17/2014 11:05
Several days ago we were confused why, out of the blue, a €1 billion loan BWIC appeared that was dumping German non-performing loans. After all, the whole point of the European “recovery” fable to date has been to deflect all the attention from the “pristine” German banks, up to an including world-recordderivatives juggernaut Deutsche Bank,  and to focus on Greece and other insolvent peripheral European nation. Earlier today, German Handelsblatt provided an answer, when it reported that “four German banks are on the brink”, i.e., four banks of which three are known, HSH Nordbank, IKB and MunchenerHyp, will likely fail the ECB’s stress test whose results are due to be announced next Friday.
Keep in mind that this is a significant fraction of the 24 German banks that are undergoing the ECB’s Stressfarce test. So one wonders: if one in six German banks is so unsafe even the ECB (which kept Cypriot banks going well past their insolvency) will give them a black stamp (because in Europe failing a bank stress test is first of all impossible since both Bankia and Dexia passed theirs with flying cololrs, but more importantly a death sentence), what does that leave for the rest of Europe’s banks, all of which are in far more dire shape than sleepy Germany?
In any case, here is Handlesblatt’s warning:
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Is Delayed Harvest Pushing Up Prices?

Over the past week, from a few articles I have read and from farmers that have contacted me, there is a belief that grains may have put in a bottom. May have? Farmers are certainly hoping and reporters have something to use to fill reports. Since I don't carry the same school of thought, I have to wonder what they see that I don't. Other than the last WASDE report claiming more feed usage I find it hard to understand why it is so difficult to see that big speculative money has used a time around a report to become very active.

The increase in the daily volume over the past week often has been twice, if not more than the volume traded day after day throughout the entire summer and first few weeks of fall. When the Commitment of Traders report is released for this week, I doubt we will see that commercial buyers have been the main buyers. (more)

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Back on September 2 I wrote ( that the DJIA had either peaked in August or would do so in September and would fall until November 2016, and for the record the high came on September 19 at InvesTRAC is long term bearish. Then on October 3 I showed a bullish chart of the 10 year Treasury yield with InvesTRAC's forecast for declining interest rates until January 2016 ( InvesTRAC is long term bullish on TBonds. If this is to be then the DJIA/TBOND ratio should give evidence that it is going to decline. And indeed it has. Take a look at the weekly chart of the DJIA/TBOND ratio plotted weekly showing the July 13 2007 high at 130.0 followed by a decline of 60 percent to 51.5 on March 6, 2009. During this time the Dow dropped from 13907 to 6627 (-52%) and TBonds rose from 106.97 to 128.56 (+20%). After the low at 51.5 the ratio rose to 128.45 almost reaching the 2007 high at 130 failed to get above the previous top and then violated its uptrend and now it is breaking down through support. InvesTRAC's forecasting model shows that the decline in the ratio could last until October 2015 before there is a meaningful correction. If history is going to be repeated then best strategy is to be long TBONDS short equities in equal values.
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High-Yield Deals on Low Risk Energy Infrastructure Companies: Williams Partners LP (NYSE: WPZ), NGL Energy Partners LP (NYSE: NGL), The DCP Midstream Partners, LP (NYSE: DPM)

The currently running stock market correction has been especially hard on stocks in the energy sector. The falling price of crude oil has led the drop, reducing expectations for future profit levels in the energy sector and driving stock prices down.
However, the large and inclusive decline of almost all energy related stocks, including one group with revenues that are not closely linked to the price of crude, has presented some tremendous buying opportunities to get stocks paying high yields. One of them is energy midstream infrastructure companies. These companies do not earn revenue based on the price of crude oil, and therefore are protected from the pains of $80 a barrel oil. These three stocks have been hit just as hard as the rest, and are now trading at attractive multiples and all have yields higher than 6%. (more)

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Friday, October 17, 2014

Position Your Portfolio for a Global Ebola Outbreak

Ebola is making the news and could become a factor in global financial markets. Individual stocks and ETFs could offer opportunity should this deadly disease continue to spread.
You have been reading about the frenzy which media attention has brought to the companies involved in the battle against Ebola. The wall-to-wall coverage has driven the prices for these stocks sky-high. In the midst of the media hysteria, it is important for investors to proceed with due diligence before investing in any of these stocks. The market has been playing a game of “musical chairs” among the various biotech companies that show promise for addressing some aspect of the epidemic. One day’s “hot stock” is in the next day’s trash heap.
LAKEMany investors following the Ebola crisis have been focusing on hazardous materials (HazMat) suits, which are in ever-increasing demand for the workers who are responsible for cleaning potentially contaminated areas. The most popular stock in this area has been Lakeland Industries (LAKE), which has seen its share price skyrocket from $6.25 on September 10 to $17.72 on October 9. Skeptical commentators have focused on the stock’s unimpressive track record. Nevertheless, in the current environment, the past is completely irrelevant. The really important question concerns whether Lakeland’s suits will find demand from the front lines in the Ebola battle, as opposed to demand from would-be shareholders. (more)
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Art Cashin: 50-Year Veteran Predicted Stock Plunge Last Week: What Now?

from King World News
Today a 50-year market veteran, who last Thursday astonishingly predicted that a “cascade” of panic selling would engulf the stock market, warned King World News that this is still an extremely “nervous market.” He also gave the exact level that will trigger the next “cascade” of panic selling to the downside and discussed the historic action in the bond and gold markets. Below is what Cashin, who is Director of Floor Operations at UBS ($650 billion under management), had to say in this timely and powerful interview.
Eric King: “Art,when I asked you last Thursday if the early signs of selling could develop into some more serious you issued what turned out to be an astonishingly accurate warning:
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John Kaiser’s Tips for Escaping the Resource Sector Swamp Alive

by JT Long
The Gold Report

What if the goldbugs are wrong and fiat currency isn’t going to throw the world into hyperinflation? What if, instead, a steadily growing economy and a new awareness of the importance of having security of supply for critical metals, along with a big exciting discovery that heats up the resource sector, are what pull sinking gold and silver prices and their related mining companies out of the muck? If so, John Kaiser tells The Mining Report that he has set his sights on the dozen companies that would star in this horror-turned-romantic epic adventure.
The Mining Report: At the Cambridge House Canadian Investment Conference in Toronto, you talked about escaping the resource sector swamp. Why do you call the current market a swamp?
John Kaiser: There are four key narratives that dominate the resource sector, in particular the junior resource sector. One is the supercycle narrative where a growing global economy catches the mining industry off guard with the result that higher-than-expected demand results in higher real metal prices.
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Agios Pharmaceuticals Inc (NASDAQ: AGIO)

Agios Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics in the field of cancer metabolism and inborn errors of metabolism (IEMs) in the United States. Its product candidates include AG-221, an oral inhibitor of the mutated isocitrate dehydrogenase (IDH) 2 protein for the treatment of patients with cancers that harbor IDH2 mutations, as well as for the Type II D-2 hydroxyglutaric aciduria treatment; and AG-120, an oral inhibitor of the mutated IDH1 protein for the treatment of patients with cancers that harbor IDH1 mutations. The company is also developing AG-348, an oral small molecule activator of PKR enzyme for the treatment of patients with pyruvate kinase deficiency.
Take a look at the 1-year chart of Agios (Nasdaq: AGIO) with the added notations:
1-year chart of Agios (Nasdaq: AGIO)
From March thru mid-September AGIO repeatedly stalled at $50 (blue). Finally, the stock broke through that $50 on a massive increase in volume. After hitting resistance at $70 the stock has fallen into what is known as a flag pattern. The pattern gets its name from the appearance of a “flagpole” on the breakout, and a small pennant formation after. This type of price action usually implies a break higher, but is certainly not a guarantee.

The Tale of the Tape: AGIO is consolidating within a flag pattern. A break above $65 should lead to higher prices, thus a long trade could be made, and a break below $60 should lead to lower prices and a short opportunity.
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Is An Oil Rally Just Around the Corner?

Oil has suffered an epic decline.
Since peaking above $107 per barrel at the end of June, the price of West Texas Intermediate (WTI) crude oil recently collapsed to less than $82. That's a 23% decline in less than three months. Oil is now trading at its lowest price in two years. And a lot of folks think it's going to fall even further.
I disagree. It's likely the bottom is almost in for oil prices. And the sector looks like it's setting up for a short-term rally.
Let me explain...
As regular Growth Stock Wire readers know, assets like oil typically trade opposite of the U.S. dollar. So oil rallies when the dollar falls... And oil falls when the dollar rallies. (more)

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The Purgative Of $80 Oil: Junk Bond Mullets Are Getting Fracked

It’s now called a “collapse”: The US benchmark light sweet crude plunged 4.6% to settle at $81.84 a barrel on Tuesday, the lowest since June 2012. In London, Brent made a similar journey to $85.04, its lowest level since November 2010. Explanations abound why this is suddenly happening, after years of deceptive calm.
Is it some harebrained plot to punish Russia by destroying its economy? Signs of success are everywhere. The ruble is in free fall despite the central bank’s efforts to prop it up. Yield on Russia’s 10-year note is nearly 10%. The government’s budget, heavily dependent on oil revenues, is in trouble. And every unit of foreign currency that isn’t nailed down is fleeing the country. (more)

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Thursday, October 16, 2014

Richard Suttmeier: Stocks Will Fall Another 20% from Here

This week, Richard Suttmeier, chief market strategist for joins S&A Investor Radio to put the markets into perspective...
For the past five years, Richard has been predicting a pullback... and now that it has finally happened, he is here to share his market analysis.
Find out why Rich is predicting stocks will fall at least 20% from current levels. You'll also hear him break down key technical indicators investors should be watching.
Even promising small-cap companies with solid fundamentals, strong management teams, and huge growth potential are getting crushed.
Markets do not go up forever. That's why it's critical to protect your capital and limit your losses during extreme volatile times. (more)
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How Long Can U.S. Production Survive Low Oil Prices?

For the last 3 years, European Brent has mostly traded in a range of $100-$120 with West Texas intermediate selling at a $5 to $20 discount. But in September Brent started moving below $100 and now stands at $90 a barrel, and the spread over U.S. domestic crude has narrowed. Here I take a look at some of the factors behind these developments.

Price of crude oil in dollars per barrel, Jan 4 2005 to Oct 6 2014. Data source: EIA.

Price of Brent minus WTI, Jan 4 2005 to Oct 6 2014.
Prices of many other industrial commodities have also declined over the last year, silver and iron ore more than oil. One factor has been weakness in Europe and Japan, which means lower demand for commodities as well as a strengthening dollar. The decline over the last year in the price of oil when paid for with Japanese yen is only about half the size of the decline in the dollar price.  (more)
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S&P500 Breaks the 2009 Uptrend Line

While everyone is worried about the invisible line that is the 200 day moving average (see here), today the S&P500 is actually breaking real levels. Last week the S&P broke below the uptrend line from the important 2011 lows. I remember those lows like it was yesterday, and we’ve broken that uptrend. But today we are now below the uptrend line from 2009 for the first time.
Here we’re looking at a logarithmic daily bar chart of the S&P500. We pointed to the beautiful failed breakout over 2 weeks ago and we are seeing the result. This is as text books as it gets, which is why on the Wall Street Journal I suggested selling. Guys, this is why we watch out for these types of moves, because the best trades come from them. How nice is this sell-off?
10-14-14 spx daily broken trendlines
Meanwhile, we also had a bearish divergence in momentum as seen on this chart. All of this said to get out of the way. But here’s the problem. Things have actually gotten worse. Let me explain.
Although momentum had put in a bearish divergence, there was a possibility that it could work itself off through time rather than through price. We’ve seen the S&P do this before over the last few years, which is healthy. But now that we are hitting oversold conditions in our 14-day RSI, momentum is officially in a bearish range for the first time since 2012. This is not good from a structural perspective. Markets in uptrends do not get oversold. They are strong enough to correct without reaching those conditions. This one clearly isn’t.
Moving on, we also broke 2 major uptrends within a very short period of time. This occurred simultaneously as we broke key support from the August lows. You know what this means right? We now have a series of, “Lower highs and lower lows”. Do you know what we call that? A downtrend.
Take all of this price action with what we’re seeing from an intermarket perspective, and the conclusion is to take any strength to sell into it. See Junk vs Treasury Bond ratio and Discretionary vs Staples Ratio.
I think best case scenario we only go down another 200 points in the S&P500.
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TD Ameritrade (NYSE: AMTD) Watch This Broker's Chart Like a Hawk for a 'Buy' Signal

No doubt, the stock market has been challenging in the past few weeks. Although it started to back down from all-time highs in September, the pace accelerated to a near panic in October, sending all major indices below important trendlines and moving averages.
Most stocks sank with the market, yet some were in rather good shape technically before the stampede commenced. TD Ameritrade (NYSE: AMTD) is one stock that seemed to get pulled down much further than its chart suggested it should.
While it's true that in chart analysis, whatever the stock does on the charts is exactly what the market intended, some indicators have already dropped to excessive levels.
AMTD Stock Chart
Stochastics, for example, which measures a stock's placement in its recent range to find overbought and oversold conditions, is now quite oversold. In fact, it is reading in the single digits. The commonly used parameters of a 14-period range with three-period smoothing returned a reading of four in a scale of zero to 100. Anything below 20 is considered oversold, so this is indeed extreme. (more)
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Treasuries Rally Biggest Since 2009 on Fed Speculation

Treasuries surged, with benchmark 10-year yields falling the most since March 2009, as a decline in retail sales prompted traders to reduce wagers the Federal Reserve will raise interest rates in 2015.
U.S. debt pared gains as stocks trimmed losses after Bloomberg News reported Fed Chair Janet Yellen voiced confidence in the durability of the U.S. economic expansion during a closed-door meeting last weekend. Futures show traders betting that the Fed will raise interest rates in December 2015, with chances of an increase in September fading to 37 percent. The benchmark 10-year yield traded below 2 percent for the first time since June 2013 even as the Fed is forecast to end its quantitative easing this month. (more)

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Wednesday, October 15, 2014

Victor Sperandeo Warns We Are Very Close To All Hell Breaking Loose

from King World News
Today a legendary trader and investor warned King World News that we are getting very close to the point where all hell is going to break loose in major markets. He also warned about what is happening in Europe and how that will play into the coming chaos. Victor Sperandeo has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros.
Incredibly, Sperandeo was interviewed in Barrons in September of 1987, where, with astonishing accuracy, he predicted that the stock market would crash. The market crash took place one month later and it just added to his legendary reputation. Below are the warnings issued by Sperandeo.
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World Stocks Crash Prediction / Vronsky / October 14, 2014
Numerous globally recognized stock analysts and sage market pundits are voicing bearish opinions of the possible forth-coming crash in major stock markets.  Here are a few bearish predictions.
Marc Faber: 
“We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.”   Faber doesn’t hesitate to put the blame squarely on President Obama’s big-government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents — why should your parents be forced to speculate in stocks and in real estate and everything under the sun?”
Peter Schiff:
“I think we are heading for a worse economic crisis than we had in 2007,” Schiff said. “You’re going to have a collapse in the dollar…a huge spike in interest rates… and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it.”  “ The crisis is imminent,” Schiff said.  “And stock market investors are oblivious to the problems.”
Jimmy Rogers:
Well known investor Jim Rogers, who made his fortune during the 1970′s crisis by investing in commodities like precious metals, has long-warned about the calamity faced by, not just America, but the world as a whole.  Sage guru Rogers warns:   “Prepare, we are on the brink of a very serious collapse that will end with currency turmoil, food shortages, panic, social unrest and a total shakedown of average citizens.”

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Hertz Global Holdings (NYSE: HTZ): Bullish Reversal Could Result in a Fast Rebound

Shares of car rental company Hertz Global Holdings (NYSE: HTZ) have plummeted nearly 40% since mid-August, erasing a nine-month rally in less than two months' time.
The selling began in force after the company withdrew its full-year financial guidance, blaming a shortage of cars due to recalls and costs associated with an accounting error. Analysts have since lowered their earnings estimates, and the losses have been exacerbated by broad market weakness.
But for traders, now is the time to look for seller exhaustion, as they could make quick gains by hopping on a bullish reversal. (more)

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Strategic Hotels and Resorts Inc (NYSE: BEE) BEE

Strategic Hotels & Resorts, Inc is an equity real estate investment trust. The firm invests in the real estate markets of the United States. It is owner and asset manager of the highest quality portfolio of upper-upscale and luxury hotels and resorts. The firm was formerly known as Strategic Hotel Capital Inc. Strategic Hotels & Resorts, Inc was founded in 1997 and is based in Chicago, Illinois.
Take a look at the 1-year chart of Strategic (NYSE: BEE) with the added notations:
1-year chart of Strategic (NYSE: BEE)
Over the last 3 months, BEE has been consolidating within a couple of short-term price levels. First, the stock has formed a clear support level at $11.25 (blue). Next, the stock has also been forming a down trending resistance level (red), which has now been tested 4 different times. These two levels combined have BEE stuck within a common chart pattern known as a descending triangle that will eventually have to break one way or another.

The Tale of the Tape: BEE is currently trading within a descending triangle. A long trade could be made on a break above the down trending resistance or a pullback to the $11.25 support. A short trade could be placed on BEE if the stock breaks below the $11.25 support level.
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AK Steel Holding Corporation (NYSE: AKS)

AK Steel Holding Corporation, through its subsidiary, AK Steel Corporation, produces flat-rolled carbon, stainless and electrical steel, and tubular products in the United States and internationally. It produces flat-rolled value-added carbon steels, including coated, cold-rolled, and hot-rolled carbon steel products; and specialty stainless and electrical steels in sheet and strip forms. The company also produces carbon and stainless steel that is finished into welded steel tubing, which is used in the automotive, large truck, industrial, and construction markets; buys and sells steel and steel products, and other materials; and produces metallurgical coal from reserves in Pennsylvania.
Take a look at the 1-year chart of AK (NYSE: AKS) with the added notations:
1-year chart of AK (NYSE: AKS)
AKS embarked on a major rally starting in June that took the stock all the way up to $11 in August, only to give that entire rally back since that peak. Throughout 2014 the stock has found support at $6 (green) whenever that level has been approached and now the stock is almost there again. Investors should be able to expect some sort of bounce, but if not, new lows for the year will follow.

The Tale of the Tape: AKS has a key level of support at $6. A trader could enter a long position at $6 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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5 Reasons Oil Prices Are Dropping / by Tyler Durden / 10/14/2014 10:19
Submitted by Chris Pedersen via,
As oil prices continue to fall, analysts and producers are trying to wrap their heads around the reasons and identify a floor price. Even though crude benchmarks like Brent and WTI keep dropping, the cost of finding oil continues to rise. What are some of the key drivers that have created this paradox?
1. The U.S. Oil Boom
America’s oil boom is well documented. Shale oil production has grown by roughly 4 million barrels per day (mbpd) since 2008. Imports from OPEC have been cut in half and for the first time in 30 years, the U.S. has stopped importing crude from Nigeria.
2. Libya is Back
Because of internal strife, analysts have until recently assumed that Libya’s output would hover around 150,000-250,000 thousand barrels per day. It turns out that Libya has sorted out their disruptions much quicker than anticipated, producing 810,000 barrels per day in September. Libyan officials told the Wall Street Journal last week that they expect to produce a million barrels per day by the end of the month and 1.2 million barrels a day by early next year.
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