Tuesday, July 9, 2013

Terex Corporation (NYSE: TEX)

Terex Corporation operates as an equipment manufacturer of specialized machinery products. Its Aerial Work Platforms segment designs, manufactures, refurbishes, services, and markets aerial work platform equipment, telehandlers, light towers, bridge inspection equipment, and utility equipment, as well as related components and replacement parts under the Terex and Genie brands. The company's Construction segment offers off-highway trucks and material handlers; loader backhoes, compaction equipment, mini and midi excavators, site dumpers, compact track loaders, skid steer loaders, wheel loaders, and tunneling equipment. Its Cranes segment designs, manufactures, services, and markets mobile telescopic cranes, tower cranes, lattice boom crawler cranes, lattice boom truck cranes, and truck-mounted cranes, as well as related components and replacement parts. The company's Material Handling & Port Solutions segment offers industrial cranes, such as standard cranes, process cranes, rope and chain hoists, electric motors, light crane systems, and crane components. Its Materials Processing segment provides materials processing equipment, such as crushers, washing systems, screens, apron feeders, and chippers.
To review potential trading opportunities with Terex's stock, please take a look at the 1-year chart of TEX (Terex Corporation) below with my added notations:
1-year chart of TEX (Terex Corporation) TEX appears to have formed a double top price pattern (blue) from January though mid-June. Double tops are reversal patterns and are as simple as they sound: Rallying up to a point (T), selling off to a support, and then rallying back up again to approximately the same top (T). As with any price pattern, a confirmation of the pattern is needed. TEX confirmed its pattern by breaking the $27.50 support (teal) that was created by the double top pattern.
The Tale of the Tape: TEX has broken down from its double top and should be moving lower overall. A short trade could be made on any rallies back up to $27.50, while a long trade could be made if the stock were to break back above the $27.50 level.
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Jim Rogers Correctly Predicted Gold Would Fall To $1200, And Now He Thinks It Could Go As Low As $900

The price of gold peaked at just over $1,900 per ounce in the fall of 2011.

And it was right around that time that commodities guru Jim Rogers began warning investors that the yellow metal could hit a low of $1,200 before the sell-off was over.

He was right.

Gold prices entered a bear market (down 20% from its high) in April. And on June 27, they touched $1,200.

In a phone interview this week, Rogers explained to us how he arrived at the $1,200 figure.

He also offers his outlook for gold as it continues its complicated bottoming process.  (more)

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This Will Destroy The Financial System As We Know It

from King World News
With continued volatility in global markets and oil still trading well above $100 level, today John Embry warned King World News about what will destroy the financial system as we know it. Embry also spoke at length about the the gold and silver markets. Below is what Embry had to say in this powerful interview.
Embry: “We are finally putting in place a bottom in gold and silver. This process has been really ugly, and it’s gone beyond any rational action in terms of price. People are finally beginning to acknowledge that the gold and silver miners, particularly pure silver miners, are operating way below their cost level.
Continue Reading at KingWorldNews.com…
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“We’re an Insolvent Society and Heading Toward Implosion” – Jay Taylor

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Financial Astrology: Portfolio Update

The home builders have been on a strong uptrend since last spring, where we also advised the likely emergence of a bullish trend that would be very long lasting.  According to the NAR, National Association of Realtors, the sale of 1 home creates 1 new job.  However, 1 new home construction creates 15 new jobs.  This is a pretty striking number when you consider the supposed ambitions of the current administration to create jobs.  These statistics are not getting mentioned in the media, however, the media is instead focused on the risk of another housing bubble.  The gold miners will have to move over as the next target appears to be the home builders.

We have closed our position in KB Home with a 17% loss as this stock is at risk in the short term.  I see the opportunity for a very bullish move emerging in August-October as Pluto moves direct creating the potential for a powerful influence that is positive for the home builders.  What will be interesting to watch is how the public may be more powerful than the Fed “fiddling” in how strong this sector is moving forward.  We are on the verge of total hypocrisy coming from the bankers and their approach to the economy and housing sector.

SPWR (SunPower Corp.)
As I mentioned above, we have closed our entire position with SPWR and have booked our 33% gains.  I like SunPower for the long term and will be watching the price action over the next couple of weeks.  This was our third position with booked gains in this stock.  Overall we have over 150% gains from our original entry in January near $8.25.

INVN (Invensense Inc.)
We will be closing our position with INVN from our entry near $13.00 next week.  We have over 19% gains from our entry on June 3rd.  INVN will report earnings onJuly 24th.  There is some stress in the astrology for the IPO and Inc charts going into earnings.  The stock is currently overbought and Jeff thinks there is potential for a move back to near $13.32.

KKD (Krispy Kreme Doughnuts)
We added KKD to our Model Portfolio on June 24th at $16.32.   We have over 18% gains with Friday’s close at $19.38.  We have booked half of our position and will close the remaining half next week.  The stock could pullback with general market weakness.  We will revisit KKD in coming weeks.

COH (Coach Inc.)
We have a realized loss ($125.80) on our COH position from our entry at $58.93.  We closed half our position and intend to hold the remaining shares.  Coach will report earnings on July 30th while Mars is trine Venus (luxury spending) and square the Sun in the IPO chart.  The combination suggests a potentially very explosive move that is bullish.  Before earnings there could be another pullback where we can add back shares at a discount.  Continue to hold.

HIMX (Himax Technologies)
We have booked over 17% gains from half our Model Portfolio position with HIMX.  We entered our position at $4.83 on June 24th and the stock closed on Friday at $5.69.  There could be selling pressure in the next couple of weeks, however, there could be a bullish move that materializes near July 16th.  Hold
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Bundesbank Warns China’s Currency “On Its Way To Becoming Global Reserve Currency”

Following the most recent shift ‘away’ from a USD-centric world (with the China-Australia direct currency convertibility), it seems the possibility of China’s Yuan as the next global reserve currency is getting closer. The Brits, Germans, and now the Swiss (who just signed a free-trade-agreement with China) are all actively vying to become Europe’s Yuan trading hub as it seems the long line of developments to internationalize the currency over the past two years. As Bundesbank board member Joachim Nagel noted in a speech entitled “Reniminbi as a potential reserve currency” this week, “the Chinese currency is well on its way to becoming one of the future global reserve currencies.” He noted that, although the USD is still the most commonly-used currency for settling trade with China; from virtually zero in 2010, the Yuan is used to settle over 12% of trading transactions now – and is likley to increase further.
This latest development in global currency relations should come as no surprise to those who have followed our series on China’s slow but certain  internationalization of its currency over the past two years. To wit: World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees“, “The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap“, and “Thanks, World Reserve Currency, But No Thanks: Australia And China To Enable Direct Currency Convertibility.”
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