Thursday, February 21, 2013

US dollar update

To the surprise of many, precious metals and commodity prices have continued to weaken since 2011 as the US dollar has been attracting international inflows. As marked in the chart update below, the $83.50 area on the US dollar index (against a basket of world currencies) is the level to watch for a confirmation of this bullish trend for the greenback; and the likely continuation of pain for commodities and commodity-focused economies like Canada, Australia, Brazil and Russia.

There are a couple of factors that may well continue this move over coming months: contracting world demand suggests further weakness for commodity prices, at the same time that the US dollar receives relative “safe haven” inflows from international capital looking for the most liquid places to park. In addition, in a world of near-zero deposit rates most places, currency appreciation offers the prospects for capital gains in the US dollar as it rallies from a 40% decade-long-decline between 2001 and 2011. With US stocks now priced for flat returns and ungodly volatility from present levels–literally return free risk– it is not necessary to hold dynamite for exposure to attractive return potential as the global economy slows down. But one does have to think outside of the group-think box.
Please bookmark us

Forget Starbucks, This Growing Coffee Chain Is Ready To Explode: DNKN

I'll never forget my first visit to Starbucks (NYSE: SBUX). Many of my friends were talking enthusiastically about this fancy new coffee shop from Seattle that had just opened in the neighborhood. When I saw the prices and the strange names of the beverages, I nearly fainted in surprise. Heck, I could buy an entire meal at McDonald's (NYSE: MCD) for the price of one of Starbucks' drinks.

Not to mention, it had the nerve to name a small cup of coffee, "Tall." Strange words such as "Venti" and "Frappuccino" quickly became part of yuppie culture and then rapidly spread to all demographics, as Starbucks grew into the behemoth brand it is today.

Soon, paying up to $5 for a cup of coffee became acceptable. This fact alone proves the amazing marketing machine of Starbucks.
There is no doubt this company has become the undisputed king of coffee shops. But cracks are starting to show in its armor.

The bar has simply been set too high for this thriving brand. Despite the company's soaring profits, global expansion, aggressive acquisitions and immense popularity, it failed to meet fiscal first-quarter revenue expectations. During the 2013 fiscal first quarter (ended December 2012), Starbucks earned a little more than $432 million, with revenue of $3.8 billion, just short of the $3.85 billion analysts were expecting.  (more)

Please bookmark us

HUI Has “Issues”

by Dan Norcini
Trader Dan Norcini

The mining shares still continue to sink lower seemingly unable to attract sufficient buying to stem the flow of red ink being seen across the sector. As a fundamentalist, I think one can make the argument that some of the leading shares in the sector are severely undervalued against the price of gold; however, as a technician, one has to respect the chart action be that as it may.
I am presenting a monthly chart but wish to note that the last trading day for February has yet to arrive so there remains sufficient time for the index to recover. It is however flirting with some important chart support level. I thought that the index might have found enough buying near 380 to bottom it. That is evidently not the case.
Continue Reading at…

Please bookmark us

The “Big Shift” & The Hidden Meanings In The New $100 Bill / By Bix Weir / February 20, 2013
As the pallets of new US $100 Bills lay waiting for mass domestic distribution in US Treasury warehouses around the United States one has to feel sorry the Sheeple who can’t see what is happening. The US is preparing for a return to the Gold Standard. It is obvious. It is blatant. And it is almost here.
Again, here’s my full analysis of the new $100 Bills…
The Hidden Meanings in the New $100 Bill
These bills will NOT be released until AFTER the crash.
As for the latest gold/silver slam…it’s great news for all Physical metal holders because it both draws attention to the obvious TOTAL control “they” have over the markets AND it means we are closer to the END than we were before the smash. It should also scare the pants off those holding Silver Derivatives such as ETF’s, Mining Shares, Silver Certificates, Pooled Accounts,etc. knowing that these forms of silver can be “set” to zero by computer programs and the markets shut down.That is a more likely End Game than a moonshot as there will be no paper winners.
The “Smart Money” should be shifting from all forms of paper silver into the real thing in their own possession at this point. I call it “The Big Shift”.
In the long run ONLY physical will survive the coming monetary meltdown.
May the Road you choose be the Right Road.
Bix Weir

Please bookmark us

The Secret Strategy for Huge Gains in Biotech

The biotech industry is known for extreme innovation that can frequently lead to huge gains for early investors.
Take Pfizer Inc. (NYSE: PFE) for example. When the company released its groundbreaking cholesterol medicine Lipitor in 1996, the best-selling drug in the history of the pharmaceutical industry, shares proceeded to climb more than 300% in the following three years. Investors who knew Pfizer was on the cusp of a hot, new mega drug that made a lot of money in a very short amount of time.
Take a look at the incredible gains the stock saw...
But historically, finding the next hot thing in biotech and pharmaceuticals has been extremely difficult. Not only are there thousands of companies across the world pursuing thousands of new drugs and therapies, but most are subjected to strict regulatory standards that can delay or even prevent them from ever putting their drugs into the market.
But thanks to a new program the Food and Drug Administration (FDA) just implemented, finding hot new drugs with high probability of reaching commercialization just became a lot easier. (more)

Please bookmark us

McAlvany Weekly Commentary

About This Week’s Show:
-The whole world is copying Bernanke insanity
-Excluding deficit spending, the U.S. is in a depression
-Gold: Prices sag but supply/demand screams Bull

Sign Up for Live Conference Call With David!

  • First: Click Here
  • Fill out your contact information
  • After you have filled out your contact information, you will receive the call in number via your email
  • Dial this number on Thursday, February 21st at 8:00 PM (EST)

Read | Subscribe@iTunes

Please bookmark us

Stocks Drop Most In 2013 As Gold Is Crucified On The Death Cross

from Zero Hedge:
A strange sea of red inhabits the screens of many traders and investors across the USA this evening, and all it took was for the FOMC to hint that the punchbowl will have to be taken away at some point in the future. Biggest jump in VIX in 2013; biggest plunge in Homebuilders in 8 months (as TOL misses and Starts were ugly); biggest dump in stocks in 2013; Gold plunges to $1565 and suffers Death Cross; USD soars and crosses above its 200DMA; and oil has frantic flash crash early on. Not a pretty day as stocks drop below the lower edge of their up-trend channel for the year and test critical support amid the highest volume of the year. The four words on everyone’s lips this evening: Where is Kevin Henry?
Read More @

Please bookmark us