Thursday, September 12, 2013

National Oilwell Varco (NYSE: NOV) Buy This Energy Stock's Breakout for Potential Double-Digit Gains

Thus far, September has brought a little upside in U.S. stocks and marginal increases in the daily trading ranges, i.e., more choppiness.

The Energy Select Sector SPDR (NYSE: XLE) is slightly outperforming the broader market, up 1.6% so far this month compared to 1.4% for the S&P 500. Of course, one week does not make a trend, particularly a Labor Day shortened trading week that also included a major Jewish holiday and ongoing headlines from the G-20 meeting. However, the relative outperformance combined with a friendlier looking chart makes the energy sector an interesting place to dig for long-side candidates.

XLE continues to grind higher through a series of rallies and consolidation phases that pull back to the uptrend line that dates back to June 2012. The most recent retest of that trendline came in late October, which also qualified as another higher low.

Since then, the ETF has worked its way up toward the 2013 major resistance line just shy of the $84 mark. An eventual push past this line would be bullish and a continuation of the series of higher lows and higher highs.  (more)

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Higher Rates Crush Mortgages: Refinancings Plunge To 2009 Levels /  by Tyler Durden / 09/11/2013 10:28 -0400
For the 16th of the last 18 weeks, mortgage refinance activity plunged (dropping 20% this week alone). Since early May, when the dreaded word “Taper” was first uttered, refis have collapsed over 70%. With mortgage servicers and providers large and small laying people off, it seems hard for even the most egregiously biased bull to still suggest that the housing recovery is sustainable. Once again, for those that forget - and as we explained in great detail here, it is not about ‘absolute’ levels of rates; it is all about relative levels as prices of homes adjust to the new ‘affordability’ of monthly payments as rates drop – any rise in rates (with a stagnant income growth) means home prices (and ex-cash-buyer demand – which looks set to ‘controlled’) collapses. This is the lowest level of mortgage refinance activity since since June 2009 and lowest total mortgage activity since Oct 2008 – in the middle of the financial crisis.
Who says the Fed didn’t drive all this?
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U.S. Silica Holdings Inc. (NYSE: SLCA)

U.S. Silica Holdings, Inc., together with its subsidiaries, engages in the mining, processing, and sale of commercial silica in the United States. It operates in two segments, Oil & Gas Propants and Industrial & Specialty Products. The company offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products. It also provides ground commercial silica products for use in plastics, rubber, polishes, cleansers, paints, glazes, textile fiberglass, and precision castings. In addition, the company offers other industrial mineral products, such as aplite, a mineral used to produce container glass and insulation fiberglass; and adsorbent made from a mixture of silica and magnesium for preparative and analytical chromatography applications. It serves oil and gas recovery markets, as well as various industries, including, container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products, and filtration products.
Please take a look at the 1-year chart of SLCA (U.S. Silica Holdings, Inc.) below with my added notations:
1-year chart of SLCA (U.S. Silica Holdings, Inc.) After skyrocketing in February and March, SLCA fell back to $18 in April and has been trading sideways ever since. During its sideways move, the stock has been consistently stalling at $24 (blue). In addition, SLCA has commonly found support and resistance at $22 (purple).
The Tale of the Tape: SLCA has two levels to watch at $22 and $24. A long trade could be made at $22 or on a break above $24. A short play should be made if the stock breaks below $22.
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Potash Corp. of Saskatchewan (NYSE: POT) Truce in Potash Dispute Could Cause This Stock Could Surge 18%

For many consumers, the notion of a "cartel" can seem quite scary. The OPEC cartel spooked the oil markets so badly in the 1970s that gasoline prices surged as supplies grew scarce. Yet for industry producers, a cartel can be a wonderful thing. Controlled supply can help insulate them from price wars seen in most competitive industries.

So when news that a cartel of potash producers was unraveling hit the headlines, shares of Potash Corp. of Saskatchewan (NYSE: POT) quickly plunged from $40 to $30. News that the cartel may be back in place might quickly push this stock back up to the $40 mark. (more)

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COMEX Registered Inventories Update

On August 30th – i.e, nine days ago – I wrote “COMEX REGISTERED INVENTORIES – COULD DISAPPEAR ANY DAY!” In it, I described the utter collapse of available-to-purchase “registered” gold bullion in the COMEX warehouses; which since April’s “ALTERNATIVE CURRENCIES DESTRUCTION,” have plunged an astounding 75%, from roughly 3,000,000 ounces to 700,000 ounces. Without such inventory, the COMEX would cease to exist as a price-discovery mechanism; and since 99% of global price discovery has occurred on the COMEX since it was commandeered at the turn of the century, the odds of an all-out Cartel collapse would increase exponentially. In fact, the unnatural backwardation we have experienced for the past six weeks would likely become PERMANENT; as going forward, trust that “futures contracts” are backed by actual metal would vanish into the ether.
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2 Dividend Stocks to Buy Now, And 1 to Avoid: Royal Bank of Canada (NYSE: RY), Altria (NYSE: MO), J.C. Penney (NYSE: JCP)

Every month, I do my damnedest to impress upon Dividends & Income readers the unbeatable importance of dividend increases.

After all, it’s consistent, aggressive growth – not fat, initial yields – that will grant you long-term security and wealth.

Accordingly, last week I started rounding up notable companies increasing dividends in August.

Like I said then, it’s a great way to discover new stocks and revisit old ones. (more)

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