Thursday, May 24, 2012
Ordained Baptist minister Lindsey Williams shared his contention that the collapse of the dollar is being orchestrated. According to his "elite" sources, we should be on the lookout for signs that a collapse is imminent. These indicators include a crack in the derivatives market, currency & trade wars, as well as a 1% rise in interest rates. He suggested that people "secure their assets immediately," which means to get out of all paper, and invest in gold and silver (which he was told will be used to back the new world currency).
Please take a look at the 10-month chart of SKUL (Skullcandy, Inc.) below with my added notations
First, you can see the obvious bottom level of support at $12 (navy) that has been tested in October, December, January and May. Next, you can see the off and on, common level at $14 (blue) that has recently acted as resistance this month.
The Tale of the Tape: The main level to watch is $12. You could buy SKUL if it comes down to $12, or short the stock if it breaks below the $12 support. In addition, if the stock rallies back up to $14 you could enter a short position, or you could buy the stock if it breaks back above $14.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
We have seen or are very near the bottom for gold stocks
by Jim Puplava, Financial Sense:
Jim welcomes back to Financial Sense Newshour David Morgan to discuss the metals markets. David believes we have seen the bottom in gold stocks, or are very near the bottom. He believes investors must now decide the amount they wish to invest, and then focus on what to buy. David also discusses the battle between the paper and physical markets, and how the paper market is losing the battle.
CSX Corp. (NYSE:CSX) — This is the operator of the largest rail network in the eastern United States. The stock is expected to be driven higher by an increase in foreign coal shipments and auto and international container shipments.
Profit margins are expected to rise in 2012 due to an increase in volume and productivity. Earnings are also expected to rise from $1.35 in 2010 and $1.67 in 2011 to $1.84 in 2012.
Credit Suisse sees steady growth ahead and has a target of $28 on the stock.
Technically the stock has been consolidating just under its 50-day moving average at $22. But two weeks ago, the stock flashed a golden cross (long-term buy signal), and yesterday the stochastic triggered a “buy.” A break over $23 on high volume could catapult it to our trading target of $27.
The U.S. spring home-selling season got off to a strong start in April, with rising sales and prices providing evidence that a housing market recovery was gaining some traction.
The housing sector has been the Achilles' heel of the economy ever since the home-price bubble burst. Data this week, however, has painted a relatively upbeat picture for the market and underscored the economy's resilience.
"The recent buoyancy in housing market activity has raised hopes that this beleaguered sector may finally be on the verge of a rebound," said Millan Mulraine, senior macro strategist at TD Securities in New York.
New home sales increased 3.3 percent to a seasonally adjusted 343,000-unit annual rate, the Commerce Department said on Wednesday. Compared with April last year, sales were up 9.9 percent. (more)
With the 10-Year US Treasury now yielding 1.74%, it is now paying a coupon that is less than the dividend yield of more than half of the stocks in the S&P 500. As of today's close, there are now 271 stocks in the S&P 500 that have a greater yield than the 10-Year US Treasury. Of the remaining 229 stocks in the index, 126 have a dividend yield that is less than the 10-Year US Treasury, while 103 pay no dividend at all.
The "Chart of the Day" is Pilgrim's Pride (PPC), which showed up on Tuesday's Barchart "52-week High" list. Pilgrim's Pride on Tuesday posted a new 14-month high of $8.15 and closed up +5.91%. TrendSpotter has been long since May 16 at $7.70. In recent news on the stock, Pilgrim's Pride on April 27 reported Q1 EPS of 18 cents, which was much better than the consensus of 8 cents. Pilgrim's Pride, with a market cap of $1.5 billion, is one of the largest chicken companies in the US, Mexico and Puerto Rico.