Thursday, July 25, 2013

Financial Astrology: Bullish Trend Remains Strong

Our model portfolio continues to show gains along with the major indexes.  At the end of last week the Nasdaq issued a buy signal along with a minor pullback.  This means the bullish trend is very strong and the markets will likely move much higher.  Last week the grand trine with Neptune/Saturn/Jupiter tightened to an exact degree on July 17th.  Transiting Jupiter is moving to an exact conjunction to the US Jupiter (stocks) while the influence from the grand trine comes down from the heavens.  The influence of this aspect could be why the markets have remained so bullish while the city of Detroit is falling into bankruptcy.  Mercury has moved direct on July 20th while inconjunct (150 degree angle, shaped like a boomerang) to the Federal Reserve Mercury in the 5th house of ‘the states or colonies,’ in this case Detroit, which is delivering, or returning like a boomerang, the karma of debt.  This influence can, and has in the past, created a ‘yank’ (sharp pullback).  This is also why I have highlighted the potential for a pullback into July 26th.

full_moonOn Monday July 22nd there is a full moon in perigee (closest to earth) at 0 degrees Aquarius.  Full moons in perigee have a more significant influence than full moons further out (called apogee).  The gravity of the moons weight pushing on earths atmosphere has a greater influence on the emotional bodies of society and reflects (or magnifies) those energies for good or ill.  The moon is simply a giant reflector of mans creations in the earth.  A full moon in perigee is different than an eclipse of the moon (not as dire) where the moon is ruled by the darkness and night side of life, instead of reflecting the light of the sun.  The last full moon in Perigee was on June 23rd at 356,991 km from earth, and marked a turning point in the markets that was bullish.  On Monday the full moon is 359,169 km from earth, 2178 km further out from earth.  The influence of the moon could again bring a turn in the markets and I am cautious about the markets here with Mercury inconjunct in the Fed chart into July 26th.

I should also note that the full moon perigee/apogee cycle is shifting now where the succeeding full moons will progressively move further from earth until next Summer when in August 2014 the full moon will be at 356,898 km from earth.

Overall, we are very bullish and see these potential pullbacks as opportunities to buy new long positions.Please share this article

Splunk is Getting Too Big to Not Fail: SPLK

Momentum investing can be a double-edged sword. If you buy a stock with great technical trends such as rising relative strength (RS), then you can ride the wave to rapid gains. But once momentum investors embark on a fierce buying frenzy, share prices can become disconnected from the fundamentals. Further gains can be had as momentum extends, but once the tide turns and momentum investors exit a stock, the downside can be swift.
The key for such stocks: Identify the event that may trigger a turning point. And that is the basis for today's trade.
Indeed, the froth is reaching dangerous levels for high-flying software provider Splunk (NASDAQ: SPLK), and an upcoming quarterly-earnings release (scheduled for Aug. 26) could lead to a serious bout of profit-taking.
Splunk's ongoing surge throughout 2013 is explained away by one simple fact: The company is growing by leaps and bounds. Splunk provides software that helps analyze and optimize the performance of large data sets, especially those found in today's cloud computing. Huge reams of data can be sorted through in a matter of seconds, allowing IT managers to make important network management decisions quickly. Data analyzers in retail, health care and other fields can now react much faster to key changes in trends. (more)

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Gerald Celente – Trends In The News – “The Extended Generation?”

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Potash Corp. on the Verge of a Potential Double-Digit Breakdown: POT

After rallying hard off a late 2008 low, agricultural chemicals firm Potash Corp. of Saskatchewan (NYSE: POT) found a serious top in early 2011, one that acted as the precursor to a choppy slide lower. Since the 2011 top, the stock has developed a series of lower highs. Notably, though, while it traced out lower highs, it continually failed to record a meaningful lower low.

POT has strong support around the $37 area. But if broken, the stock has the potential to quickly accelerate lower, finally recording the lower low that the bears are looking for.

Oh, I remember it well... Potash used to be the sexiest stock on the block back in late 2006 through the first half of 2008. But, as always happens, those chasing a stock with too steep a slope end up paying a steep price. For POT investors, this happened in 2008 as the stock cascaded lower. A climb that took roughly 20 months to complete took less than six months to erase/retrace 90%.

I discuss such patterns frequently because they offer some of the juiciest trading setups. Furthermore, they exemplify the herding nature of today's markets, driven by momentum and trend followers, and exacerbated by overly accommodative fiscal policies on the part of central banks. (more)

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2 Stocks to Buy Ahead of ‘Big Pharma’ Buyouts: ORMP, MNKD

According to the American Medical Association (AMA), one in three Americans is overweight.
Moreover, the AMA recently classified obesity as a disease.

This is news that’s bound to trigger a renewed effort in developing treatments for the two most common conditions associated with it:
Diabetes and heart disease.

But for that to happen, we’ll need to see a trend shift.

That’s because Big Pharma’s research and development budgets are anything but robust right now.
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Aruba Networks, Inc. (NASDAQ: ARUN)

Aruba Networks, Inc. provides network access solutions for the mobile enterprises worldwide. It offers ArubaOS, an operating system software for wired, wireless, and remote access products for integrating user-based security, application-aware radio-frequency services, and wireless local area network (LAN) access to deliver mobile networking solutions, as well as provides various software modules for ArubaOS. The company also offers Mobility Controllers, which provides context-aware networking across wireless and wired LANs, virtual private network (VPN) connections, and remote offices; ClearPass Access Management System for bring your own device provisioning and onboarding, as well as for IT-issued and personal mobile devices to connect to any network; Aruba Instant, a controller-less Wi-Fi solution; AirWave, a multivendor network management software that manages radio frequency (RF) environment, controllers, wired infrastructure, and access points; and Access Points, which offers integrated RF management, intrusion prevention, and support for maximum client density of smartphones and tablets.
Please take a look at the 1-year chart of ARUN (Aruba Networks, Inc.) below with my added notations:
1-year chart of ARUN (Aruba Networks, Inc.) In contrast to the overall stock market, ARUN has had a rough slide since March. After a couple of large gaps lower in May though, the stock has slowly started to rebound and is fast approaching $18. The level (navy) is key to ARUN because it was both support back in October and November, and it was also resistance in May after the 2nd gap lower.
The Tale of the Tape: ARUN is approaching a key level at $18. A trader could enter a short position at $18 with a stop placed above that level. If the stock were to break back above that $18 resistance a long position would be recommended instead.
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