The government’s plan to steal your money.

by Simon Black, Sovereign Man :

There are consequences to being flat broke.

There are consequences to investing any level of confidence in a financial system underpinned by debt and the creation of paper currency.

There are consequences for ignoring reality and pretending that everything is normal.

This is one of them: European officials yesterday flat out admitted that they were discussing rolling out a series of harsh capital controls across the continent, including bank withdrawal limits and closing down Europe’s borderless Schengen area.

Some of these measures have already been implemented sporadically; customers of Italian bank BNI, for example, were all frozen out of their accounts starting May 31st upon the recommendation and approval of Italy’s bank regulator. No ATM withdrawls, no bill payments, nothing. Just locked out overnight.

Read More @ SovereignMan.com

We Are Within Months of This Crisis Blowing Wide Open

from KingWorldNews:

Four-decade veteran John Hathaway told King World News, “we are within months … from this thing blowing wide open. When that happens, money will look to find whatever it can in order to participate.” The prolific manager of the Tocqueville Gold Fund also said, “I think at that stage you are going to see gold go ballistic because it will be an admission of failure on the part of policymakers.” Here is what Hathaway had to say about the ongoing crisis: “All of the political leaders and policymakers are frantically trying to put their fingers in the dyke. The euro is on its last legs. It’s very late in the game to expect anything like the coordinated action that would be necessary to restore confidence. People are moving to the exits. You’ve got slow motion bank runs taking place. People who see this and understand it are moving into gold.”

Hathaway continues @ KingWorldNews.com

Dollar General Is a Bit Too Pricey

Dollar General (NYSE:DG) — The Trade of the Day first recommended buying this leading U.S. discount retailer on Sept. 29, 2011, with the stock at $38. Since then, DG has exceeded our initial target of $44, and yesterday closed over $50.

Its superb advance is a result of its defensive qualities in a weak economy. With low operating margins and a strong cash flow, earnings are expected to top $2.82 in 2013, up from $2.22 in 2011.

Even though it continues to exceed analysts’ estimates by reporting Q1 earnings of 63 cents versus an expected 48 cents, it is technically overbought. By breaking above its well-defined bullish channel, it is overpriced and due for a pullback. Also, note the overbought MACD.

Fundamental analysts’ consensus target is $55, and our technical target is $58. The buy under price is at its 50-day moving average at $47.

Tenneco Inc. (NYSE: TEN)

Tenneco Inc. designs, manufactures, and sells emission control and ride control products and systems for light, commercial, and specialty vehicle applications worldwide. The company offers emission control systems, such as catalytic converters and diesel oxidation catalysts to reduce harmful gaseous emissions; diesel particulate filters to eliminate particulate matter emitted from diesel engines; burner systems, which combust fuel and air inside the exhaust system; and hydrocarbon vaporizers and injectors. It also provides lean nitrogen oxide traps, selective catalytic reduction systems, and alternative NOx reduction technologies that reduce nitrogen oxide emissions from diesel power trains; mufflers and resonators to provide noise elimination and acoustic tuning; exhaust manifolds that collect gases from individual cylinders of a vehicle's engine and direct them into a single exhaust pipe; pipes to connect various parts of hot and cold ends of an exhaust system; hydro formed assemblies; hangers and isolators used for system installation and elimination of noise and vibration; and after treatment control units. In addition, the company offers ride control systems comprising shock absorbers, struts, vibration control components, a suite of roll-control and nearly equal wheel-loading systems, and advanced suspension systems, as well as other ride control products, including load assist products, springs, steering stabilizers, suspension kits, and modular assemblies.

To analyze Tenneco's stock for potential trading opportunities, please take a look at the 1-year chart of TEN (Tenneco, Inc.) below with my added notations:

Over the last (9) months, TEN has formed a strong support level at $25 (navy). Starting in September of 2011, TEN has tested that $25 level on 3 or 4 different occasions. In addition, TEN has created an important level at $30, both as support (green) and a resistance (red) several times since last October. The stock is currently pulling back to the $25 support.

The Tale of the Tape: TEN is currently trading between its $25 and $30 price levels. A long position could be entered on a pullback to $25 or on a break above $30 with a stop placed below the level of entry. However, if you are bearish on the stock or overall market, a short trade could be made on a break below the $25 level or on a rally up to $30.

McAlvany Weekly Commentary

Changing China

Posted on 13 June 2012.

A Look at This Week’s Show:
-Will China’s currency go international?
-China must become more self dependent.
-Will those in power willingly give it up?

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The DOG Indicator

I'm working on a new indicator.

You see, in our eyes, you can't trust the economic indicators the government puts out: unemployment, CPI, GDP... they're all manipulated, adjusted and revised.

I'd rather deal with real numbers, pure and simple. Things like the price of gold, oil and markets.

You might argue that speculators can come in and skew these prices. And you're right. But these skews are also important. They point to bubbles and oversold situations that can be very profitable.

If you play them right.

The indicator I'm playing around with is a comparison of the Dow to the gold-to-oil ratio. I'm calling it the DOG indicator, since it takes the Dow, oil and gold into account.

Historically, the gold/oil ratio is about 15.6, meaning one ounce of gold can buy 15.6 barrels of oil. From a trading perspective, if the ratio climbs above 21, this means gold is overvalued and oil is undervalued.

The reverse is true if the ratio falls below 12.

Here's the chart from BullionBarron.com, but there are several other places you can find this:

Now here's a chart of the past 40 years for the Dow. (more)

Chart of the Day - AthenaHealth (ATHN)

The "Chart of the Day" is AthenaHealth (ATHN), which showed up on Tuesday's Barchart "All-Time High" list. AthenaHealth on Tuesday posted a new all-time high of $80.13 and closed up +4.90%. TrendSpotter has been long since last Friday at $78.05. In recent news on the stock, Wells Fargo on May 30 initiated coverage on AthenaHealth with an Outperform and a target of $85-90. Lazard Capital on May 23 initiated coverage on AthenaHealth with a Buy and a target of $87. AthenaHealth, with a market cap of $2.8 billion, is a leading provider of internet-based business services for physician practices.