Tuesday, June 26, 2012

Harley-Davidson, Inc. (NYSE: HOG)

Harley-Davidson, Inc. engages in the production and sale of heavyweight motorcycles. It operates in two segments, Motorcycles and Related Products, and Financial Services. The Motorcycles and Related Products segment designs, manufactures, and sells cruiser and touring motorcycles for the heavyweight market. This segment sells its products through a network of independent dealers and distributors primarily in North America, Europe, the Middle East, Africa, the Asia-Pacific, and Latin America. The Financial Services segment provides wholesale retail financing; and insurance and insurance-related programs primarily to its dealers and their retail customers in the United States and Canada. This segment also offers motorcycle insurance, as well as extended service contracts, credit protection, motorcycle maintenance products, gap coverage, and debt protection products to motorcycle owners. The company was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

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

HOG has rallied nicely with the overall market since October of last year. Over the last (5) months, the stock has created a couple of key price levels to watch. Most importantly, the $45 support level (navy) that was also a brief resistance back in January. This support has been tested on 5) different occasions. In addition, the $50 (red) price has commonly acted as resistance in both March and June.

The Tale of the Tape: If HOG rallies back up to $50, you could enter a short play. If it breaks above $50, you could certainly enter a long play. You could also buy HOG if it comes back down to the $45 level, or short the stock if it breaks that $45 support.

Richard Russell – This Terrifying Financial Collapse & Gold

from KingWorldNews:

With global markets trading in a sea of red, the Godfather of newsletter writers, Richard Russell, issued the following warning: “… it is dawning on Bernanke that the Fed cannot defeat the powers of deflation and the primary bear trend … and Bernanke knows it, but cannot talk about it – it’s too frightening.” Russell also discussed gold at length, but first, this was Russell’s disturbing conclusion regarding the precarious situation we face: “The Russell view — The Fed and all central banks are fighting the implacable forces of global deflation. This is really the primary bear trend that I’ve been writing about. It’s the result of a fundamental change in the world markets. Suddenly, within the space of a few years, Asia has entered the global economy.”

Richard Russell continues @ KingWorldNews.com

The Full “Three-Days-To-Eurocalypse” Soros Interview

from Zero Hedge:

In a no-holds-barred interview with Bloomberg TV’s Francine Lacqua, the increasingly droopy-faced George Soros remains as sprite-minded as ever in his clarifying thoughts on Europe. His diagnosis is spot on: “Basically there is an interrelated problem of the banking system and the excessive risk premium on sovereign debt – they are Siamese twins, tied together and you have to tackle both” and summarizes the forthcoming Summit ‘fiasco’ as fatal if the fiscal disagreements are not resolved (and as of this afternoon, we know Germany’s constant position on this). His solution is unlikely to prove tenable in the short-term as he notes “Merkel has emerged as a strong leader”, but “unfortunately, she has been leading Europe in the wrong direction”. His extensive interview covers what Europe needs, the Bund bubble, GRexit, post-summit contagion, and Mario Monti’s impotence.

Read More @ Zero Hedge.com

Stocks Could be Headed Much Lower... Here's What to Do

Goldman Sachs recently announced that they believe the stock market is poised for at least a short-term sell-off. Bearish calls from major Wall Street firms are rare, so it makes sense to pay attention to this news.

In addition to Goldman's change of heart, I have a few other reasons to be concerned about the short-term. Here are a couple ideas for where to put investment capital while the risks are high.

In March of this year, Goldman Sachs said they believed stocks were undervalued and over the next few years stocks would deliver strong gains. Three months later, strategists at the firm said the S&P 500 could fall towards 1,285 from a recent 1,350. Their bearish call makes sense. Stocks have gone down slightly in the past three months while the economy has shown signs of deterioration. This is a setup for a bear market.

To spot investment opportunities, I like to look at the 26-week Rate of Change ("ROC") indicator. This indicator points to promising stocks and ETFs that have real potential to outperform the market. It also points out the stocks and ETFs that are most likely to underperform. I've found the same general idea can be applied to economic data as well. (more)

This "Stealth" Bull Market Just Hit a New High

Biotech has just "broken the box"...

For the last few months, Growth Stock Wire readers have been following the "stealth biotech boom." Biotech stocks are enjoying a big uptrend... but you rarely see it mentioned in the mainstream press.

We're particularly interested in this uptrend because biotech is one of the greatest "boom and bust" sectors known to man. Thus, the sector is a good friend for the speculator [2]. Ride the booms and avoid (or even short) the busts, and you can make a fortune.

The biotech sector shares [3] many characteristics with the resource sector. Like mining exploration firms, many biotechs burn through cash in search of the "next big thing." When a firm strikes it rich, the returns can easily go into the thousands of percent.

For this reason, both sectors tend to draw in "hot money" every few years and go through huge speculative booms... which are followed by big busts.

You can gauge which way the biotech wind is blowing with the SPDR [4] Biotech Fund (XBI), which holds more than 50 companies in the sector. (more)

BREAKING: U.S. Regulators to Classify Gold as Zero-Risk Asset

by John Butler, Financial Sense:

In what might be the most underreported financial story of the year, US banking regulators recently circulated a memorandum for comment, including proposed adjustments to current regulatory capital risk-weightings for various assets. For the first time, unencumbered gold bullion is to be classified as zero risk, in line with dollar cash, US Treasuries and other explicitly government-guaranteed assets. If implemented, this will be an important step in the re-monetisation of gold and, other factors equal, should be strongly supportive of the gold price, both outright and relative to that for government bonds, the primary beneficiaries of the most recent flight to safety. Stay tuned.

Read More @ FinancialSense.com

The Day Of The Deflationists

by Jim Sinclair

My Dear Extended Family,

Never before in the entire period of 1968 to 1980, or 2001 to present, have I received so many copies of classical deflationist scenarios in one day. It would seem as if the God of Deflation overflew the gold guys and dropped their leaflets.

Classical deflation does not have a snowball’s chance in hell of occurring now for any length of time. To assume that you have to hold the belief that Bernanke is a mole in the present administration, placed their covertly to bury the present administration so deep that there will never be a democrat in office after 2013 anywhere.

If you believe there is a political appetite for the collapse of the Western financial system, they had a perfect chance in 2008 and did not accept that great opportunity to purge the system of Banksters for political reasons.

Continue Reading at JSMineset.com…

Chart of the Day - Mead Johnson Nutrition (MJN)

The "Chart of the Day" is Mead Johnson Nutrition (MJN), which showed up on Friday's Barchart "All-Time High" list. Mead Johnson on Friday posted a new all-time high of $88.72 and closed up 3.23%. TrendSpotter has been long since June 15 at $85.32. In recent news on the stock, Credit Suisse on June 14 raised its earnings estimates for Mead Johnson due to lower commodity prices and recent price increases in China. Credit Suisse reiterated its Outperform rating and $98 price target. Miller Tabak on June 5 upgraded its rating on Mead Johnson to Buy from Neutral with a price target of $90. Mead Johnson Nutrition, with a market cap of $17 billion, is a global leader in pediatric nutrition and sells more than 70 products in over 50 markets worldwide. The company's "Enfa" family of brands, including Enfamil infant formula, is the world's leading brand franchise in pediatric nutrition.