Friday, July 19, 2013

German financial journalist Lars Schall has released a MUST LISTEN interview with William Kaye, the Senior Managing Director of the Pacific Alliance Group of Companies in Hong Kong who made waves last week in a KWN interview alleging he owns gold bullion bars with the Bundesbank’s stamp and holds them in Hong Kong.
Kay clarifies his powerful claims to KWN, and drops another major bombshell,stating that the entire 3 month paper gold raid was orchestrated to prevent the imminent systemic gold default by the bullion banks in the days following the April gold default by ABN Amro:
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ONEOK, Inc. operates as a diversified energy company in the United States. The company operates in three segments: ONEOK Partners, Natural Gas Distribution, and Energy Services. The ONEOK Partners segment engages in gathering, processing, storing, and transporting natural gas; owns and operates interstate and intrastate regulated natural gas transmission pipelines and natural gas storage facilities; and gathers, treats, fractionates, stores, and transports natural gas liquids (NGL) to third-party fractionators and pipelines. This segment is also involved in the storage and distribution of NGL products to petrochemical manufacturers, heating-fuel users, refineries, and propane distributors through regulated distribution pipelines. The Natural Gas Distribution segment provides natural gas distribution services to approximately 2 million customers, including residential, commercial, industrial, and transportation customers, as well as wholesale and public authority customers in Oklahoma, Kansas, and Texas. The Energy Services segment offers natural gas supply and risk-management services for natural gas and electric utilities, and commercial and industrial customers through its network of leased storage and transportation capacity.
To review ONEOK's stock, please take a look at the 1-year chart of OKE (ONEOK, Inc.) below with my added notations:
1-year chart of OKE (ONEOK, Inc.) Notice the falling wedge that I have outlined on the chart of OKE. A falling wedge price pattern is essentially a type of triangle formation in which the stock (OKE) has formed a downtrending resistance line (red) and a downtrending support level (blue). These two trend lines converging on one another combine to form a falling wedge, which is considered a bullish pattern.
Confirmation of this pattern occurred when the stock broke through the downtrending resistance. In addition, the stock also broke back above its key level of $42 (brown).
The Tale of the Tape: OKE has confirmed its falling wedge pattern, which should lead to higher prices for the stock. A long trade could be entered on a pullback to the key level of $42 with a stop placed below that level.
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Is That a ‘V’ Bottom or the Dreaded Double-Top?

SPX ChartDespite reassurances that the Federal Reserve has no immediate plans to ease stimulus, stocks closed only slightly higher Wednesday. Chairman Ben Bernanke emphasized that decisions would be flexible and depend on “incoming data,” which measures inflation and other economic results.

Housing starts for June hit an annualized rate of 836,000 units versus an expected 958,000. There were no surprises from the Fed’s July Beige Book, which showed that housing was running at a “moderate to strong” pace and wage growth was “modest.” It also noted that the Chicago and Richmond districts reported a solid demand for part-time workers.

At Wednesday’s close, the Dow Jones Industrial Average was up 19 points to 15,471, the S&P 500 rose 5 points to 1,681, and the Nasdaq gained 12 points at 3,610. The NYSE traded 676 million shares and the Nasdaq crossed 372 million. On the Big Board, advancers exceeded decliners by about 2-to-1, while on the Nasdaq, advancers were ahead by 1.4-to-1.  (more)

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Short Bonds: It’s Best Trade in Market Right Now, Says Hoenig

FOMC Chairman Ben Bernanke said in his testimony Wednesday that he believed financial markets were finally getting his message. Specifically that the Fed will continue to stimulate the economy as long as the unemployment rate remains above 6.5% and inflation is under 2%.

It's nothing Bernanke hasn't said in every speech, comment, press conference or statement for about the last year. The reason Bernanke feels compelled to make the point again is that the bond market has started doing it's own thing despite, or perhaps in spite of Bernanke's commitment to keep rates at or near zero percent.  (more)

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Gold Stocks – What to Look for Next

The Major Hurdle
The charts employed in this article were prepared after the close on Tuesday July 16, so they do not yet reflect any changes that may occur in intraday trading today (Wednesday). However, the message, or let us say, the technically important points, won’t be altered by this.
In our previous update we noted that what one thing that is required to change the market’s character (i.e., that is required to switch it from bearish to at least short to medium term bullish) is to close at least one of the previously established gaps by rising through them.
Yesterday the gold stock indexes took a first step in attacking the first major gap, by rising slightly into its territory. Assuming that this time, closing the gap will be accomplished, the question arises what the next major hurdle is. Since we like to keep things simple, we are settling on the still declining 50 day moving average. This moving average has proved to be impenetrable resistance on the way down, with the last major failure recorded in early June:
The HUI index has begun to rise into the territory of the first major gap. Note that the last attempt at a trend change from mid-May to early June ultimately was rejected by the 50 day moving average. Rising above this moving average and staying above it in the first retest is the next necessary ingredient to gain confidence in a trend change
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Spread between WTI and Brent vanishes, lower relative U.S. oil prices

WTI and Brent used to trade in line, but prices diverged over the past few years

The spread between West Texas Intermediate (WTI) and Brent crude represents the difference between two different crude benchmarks. WTI more represents the price that U.S. oil producers receive, and Brent more represents the prices received internationally. The two crudes are of similar quality, and theoretically should be priced very close to each other. However, the prices differed greatly between the two crudes because a recent surge in production in the United States has caused a buildup of crude oil inventories at Cushing, Oklahoma, where WTI is priced. This created a supply and demand imbalance at the hub, causing WTI to trade lower than Brent. Before this increase in U.S. oil production, the two crudes had historically traded in-line with each other. (more)

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