Wednesday, September 4, 2013

Unprecedented Backwardation in Metals

David discusses the recent landmark 8 week Backwardation and the positive implications on gold and silver, currently and in the near future.
Please share this article

Microsoft: Beware This Tech Dinosaur

Judging from the 7.28% “Ballmer Bounce” that followed his announcement, the markets love the idea of long-suffering Microsoft (NYSE: MSFT) CEO Steve Ballmer stepping down.

So do a lot of investors who believe now – finally – it’s time to buy Microsoft.

But is it?

Can the company bring in a new CEO with vision? Can it finally begin to understand content?

And is it willing to jettison employees and products that aren’t “worth” what the legacy suggests?
Please share this article

Tesla Is the New Apple : TSLA

Tesla's (TSLA) stock has done nothing but make people money but you wouldn't know it from the Twitter-sphere. Any mention of the electric car industry leader's stock in a favorable light is met by the sneering contempt unique to bears. Sure there are devotees but for the most part Tesla is regarded as a stock for cult-members, not investors.

"If you talk positively about Tesla you're some sort of fiend," says OptionMonster's Jon Najarian. "There are so many haters... you can see it by the 30% short interest." In that sense Najarian says he hasn't seen such instinctive contempt for "cult-ish" shareholders since the days when Steve Jobs was running Apple (AAPL).

Comparing Tesla creator Elon Musk to Steve Jobs isn't a new idea, but it's hard to find many parallels to Musk among living CEOs. In fact there are those who don't think Jobs is worthy of being held in the same regard as Jobs. (more)

Please share this article

Pension Crisis Fueled by Manipulation of Interest Rates by Central Banks

by Martin Armstrong
Armstrong Economics

The pension crisis is beginning to emerge as a real growing problem. The central banks have been keeping interest rates low for the primary reason of reducing the national debts. In Germany, they are beginning to notice that not merely are government pensions growing faster than private as public servants help themselves to our income by threat of criminal prosecution for failure to pay whatever taxes they demand, but in Germany the pension funds in the private sector are headed into massive insolvency. Even the press is now reporting that private pensions cannot meet obligations because of the Euro Crisis where interest rates are kept artificially low to help Southern Europe meet obligations.
Continue Reading at…
Please share this article

Gold Surges Over $40 As COMEX Shorts Collapse To 7-Month Low

Spot gold prices have surged over $40 from Sunday’s knee-jerk lows as once again lower prices have encouraged demand. Gold had shfted back to unchanged from Friday’s close before Boehner spoke but since then has accelerated over $20 higher.

Gold shorts in the futures and options markets have dropped for 6 of the last 7 weeks. The 60% drop in the non-commercial short position represents a massive 81,700 contracts (8,170,000 ounces or ~$10.6 billion worth of notional ‘paper’ gold).

Continue Reading at…
Please share this article

Amphenol Corporation (NYSE: APH)

Amphenol Corporation provides electrical, electronic, and fiber optic connectors; interconnect systems; and coaxial and specialty cables worldwide. Its Interconnect Products and Assemblies segment produces interconnect products, such as connectors for electronic or fiber optic transmission; assemblies, which include a system of cables and connectors for linking electronic and fiber optic equipment. This segment's connector and cable assembly products are used in communication applications, smart card acceptor and other interconnect products, set top boxes and other applications, fiber optic connectors, backplane and input/output connectors and assemblies, sculptured flexible circuits, hinge products, and other wireless communication devices. The company's Cable Products segment offers coaxial cable and connector products for cable television systems, including full service cable television/telecommunication systems; radio frequency and fiber optic interconnect components for full service cable television/telecommunication networks; and data cables and specialty cables to connect internal components in systems.

To review a current H&S pattern on Amphenol's stock, please take a look at the 1-year chart of APH (Amphenol Corporation) below with my added notations:

1-year chart of APH (Amphenol Corporation) APH had rallied from a low of $58 in October to a peak of $85 in July. Over the last (4) months the stock had created a very important “neckline” of support at $75 (navy), which was also a common area of resistance back in March-April. Above the neckline you will notice the H&S pattern itself (blue). Confirmation of the H&S occurred earlier in the week when APH broke its $75 “neckline”. So, the stock should be moving lower overall from here.

Keep in mind that simple is usually better. Had I never pointed out this H&S pattern, one would still think this stock is moving lower simply if it broke below the $75 support level. In short, whether you noticed the pattern or not, the trade would still be the same: On the break below the key $75 level.
The Tale of the Tape: After rallying higher for (10) months, APH confirmed a head & shoulders pattern. A short trade could be placed now, or could be entered on any rallies up to or near the $75 area. A significant break back above $75 could negate the forecast for a move lower.
Please share this article