Thursday, July 8, 2010
Yesterday the financials had a strong day and this stock was up 12.4%.
The charts are telling us that there is a positive divergence between the stock price vs the RSI and MACD. Another plus is the stock broke through the previous recent lows around $20 on good volume.
One big negative is the 200 and 50 day moving averages have crossed and both trending down suggesting the primary trend is still down, so this is a short term trade for now with significant risk. ***Not investment advice***
Posted on 07 July 2010.
About the Guest:
Kamran Bokhari is STRATFOR’s Regional Director of Middle East and South Asia Analysis. Mr. Bokhari has published numerous analytical, scholarly, and theoretical articles related to geopolitics of the Islamic world. Bokhari is also the author of a forthcoming book on radical/militant Islamist political thought, entitled “Voices of Jihad: New Writings on Radical Islam’.
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Because crude prices reflect changes in energy demand, they're a good bellwether for growth, but a host of factors, from the spill and offshore drilling moratorium in the Gulf to a slowdown in China, have left oil prices without a clear direction. Energy experts say that as long as crude prices keep bobbing up and down like the tar balls washing toward Louisiana beaches, investors can expect few answers and a bit more pessimism. (more)
“Bonds are not a good place to invest in,” Rogers said at a conference in Kuala Lumpur today. “You should own commodities because that’s your only refuge” whether it’s silver or rice, said Rogers, who predicted the start of the global commodities rally in 1999.
Gold has gained 8.3 percent this year, leading advances in precious metals, as investors seek haven assets to protect their wealth amid concern the global economic recovery will falter. Still, commodities overall capped their worst quarter in more than a year on investors’ concern that slower growth from China to the U.S. will sap demand. (more)
Chris comments: Just a short of a month ago, I suggested that the Dollar could "cool off" from its steep rise, on account of the strong overhead resistance.
In the past month, the Dollar has declined almost 4% and the oversold Euro has rallied.
Now the Dollar finds itself on a support line that dates back to December of 2009. This support line is the first big "test of strength" for the Dollar in the past 90 days.
As usual, the impact of what the Dollar does here, will have a sizeable ripple effect on many asset classes.
(CNNMoney.com) -- Perhaps it's time for Google to be evil.
Shares of the Internet advertising giant had fallen for 13 consecutive trading sessions before finally rallying Wednesday. During that unlucky stretch, Google's stock plunged (coincidentally?) 13%, erasing about $20.8 billion in market value.
The stock rose more than 3% Wednesday along with the broader market. That was despite a price target cut by J.P. Morgan analyst Imran Khan.
But even though Google (GOOG, Fortune 500) broke its losing streak, the recent rough patch is just the latest in what's been an awful year for the stock. Google's down nearly 30% in 2010, worse than the drops experienced by top rivals Microsoft (MSFT, Fortune 500) and Yahoo (YHOO, Fortune 500). (more)
In the Midwest, some fields got more than 10 inches (25 centimeters) of rain since June 7, or three times the normal amount, data from the Midwest Regional Climate Center show. The U.S. Department of Agriculture reduced its condition ratings for corn and soybeans for two straight weeks.
“The crops are now getting smaller,” said Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa. “There has been too much rain.”
Soybean futures for November delivery rose 32.5 cents, or 3.6 percent, to $9.325 a bushel on the Chicago Board of Trade, the biggest gain since Oct. 12. Earlier, the most-active contract reached $9.3575, the highest level since June 23. (more)
Tesla debuted on the public market last week, raising $226 million in an initial public offering priced at $17 a share. That $17 price had been lifted at the last minute from the original range of $14 to $16 a share, thanks to heavy demand among institutional investors for shares in the high-end electric car manufacturer.
Once Tesla shares hit the markets on June 29, they kept rising, surging 40% to $23.89 in a matter of hours. By midday Thursday, Tesla had reached $30.42 -- 79% above its offering price. Stories appeared in the media calling the stock a "game changer" and noting its ability to "electrify the IPO market." (more)
--I'm a very sceptical person by nature.
--In relation to the markets I don't really listen to the constant stream of commentary from all those "experts". I have grown accustomed over the years to journalists wheeling out the bulls on the days when the market is up and then dragging out the bears when the market goes down. If the media was a human being you would have to conclude that they were suffering from multiple personality disorder and would have them committed.
--There is zero accountability across the whole spectrum of the financial markets; from the brokers to the reporting of news. They will all happily scream their views to all who will listen but there is no one looking back on their past performance and pointing out whether they would actually make money consistently over time. And I assure you that the great bulk of them get it wrong more often than not. (more)
Many economists are worried about inflation. But others say they're looking the wrong way.
By Heidi N. Moore, contributor
The national knowledge is creeping in that the good times of the stimulus may soon be over. The United States is running an 11% deficit and our gross debt is 83% of our GDP and may rise to 100% in as little as three to five years.
So when we saw a recent note about the "Keynesian endgame" from Scott Minerd, the chief investment officer of Guggenheim Partners, we decided to pay attention:
"At its core, the Keynesian theory says governments should be called on to prime the economic pump as needed. This works as long as the government has the ability to borrow money. But what happens when a government can no longer borrow money?" (more)
A stronger euro helped propel commodity shares, cooling some worries about the European debt crisis.
The S&P 500 (SPX) gained 32 points, or 3.1% for its biggest one-day point and percentage gain since May 27. The Nasdaq (COMP) composite gained 65 points, or 3.1%, its biggest one-day point and percentage gain since May 10. (more)