Tuesday, November 12, 2013

Weatherford International Ltd (NYSE: WFT)

Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. It offers artificial lift systems, which include progressing cavity pumps, reciprocating rod lift systems, gas lift systems, hydraulic lift systems, plunger lift systems, hybrid lift systems, and wellhead systems. The company also provides drilling services, including directional drilling, Secure Drilling services, well testing, drilling-with-casing and drilling-with-liner systems, and surface logging systems; and well construction services, such as tubular running services, cementation tools, liner systems, swellable products, solid tubular expandable technologies, and inflatable products and aluminum alloy tubular products. In addition, it designs and manufactures drilling jars, underreamers, rotating control devices, and other pressure-control equipment used in drilling oil and natural gas wells; provides a line of completion tools and sand screens; and offers rental of in-house or third-party manufactured equipment for the drilling, completion, and workover of oil and natural gas wells to operators and drilling contractors.
To review Weatherford's stock, please take a look at the 1-year chart of WFT (Weatherford International, Ltd.) below with my added notations:
1-year chart of WFT (Weatherford International, Ltd.) Over the last 12 months WFT has consistently moved higher. Since March though, the stock has formed a nice trendline of support (blue). Always remember that any (2) points can start a trendline, but it's the 3rd test and beyond that confirm its importance. Obviously WFT's trendline is important to the stock since it has been tested on multiple occasions over the last (8) months.

The Tale of the Tape: WFT has created a nice trendline of support over the last (8) months. A long position could be entered on a pullback to that trendline, which is approaching $16, with a stop placed below that level. A short position could be entered if WFT were to break the trend line support.
Please share this article

"Big Pharma" uptrend continues : PJP

Today's chart is an update on our colleague Dr. David Eifrig's big call on Big Pharma. It shows he was really, really right...
Longtime readers are familiar with Doc's ideas on Big Pharma stocks, like Pfizer, Abbott Labs, and Eli Lilly. For years now, he has noted how aging Baby Boomers are driving pharmaceutical and medical-service consumption. Plus, government programs like "Obamacare" will drive increased demand for drugs.
An easy way to monitor (and invest in) Big Pharma stocks is the PowerShares Dynamic Pharmaceuticals Fund (PJP). This fund is a "one click" way to buy a diversified basket of drug stocks.
At the DailyWealth office, we keep tabs on over 50 investment funds that cover all kinds of sectors, commodities, and countries. Of all the funds we monitor, PJP is at the top when it comes to highest returns over the past three years... and it's up nearly 150%. Well done, Doc!
Please share this article

ECB Cuts Euro Rate: Competitve Devaluations Continue

from Financial Survival Network
Mike “Mish” Shedlock joins us to discuss the latest act of interest rate self-immolation by the European Central Bank. It’s just as predicted by FSN, the economic bad news and depression is shifting from the US to other parts of the world. Now, we can look forward to awful headlines coming out of Europe. Mish’s blog shows that the Bank of Spain just discovered 20.5 billion Euros worth of bad loans on their books. We’re shocked and we’re sure you are too! Keep watching as the tragi-comedy continues.
Click Here to Listen to the Audio
Please share this article

US Dollars and Commodities

We’ve seen a nice little rally in US Dollars over the last couple of weeks. This is something we expected to occur as the Euro set up beautifully for a false breakout. I love it when that happens. It’s tough to find a better risk/reward trade in any market. But today, let’s take a look at the implications of this renewed strength in US Dollars.
Like we always talk about, the negative correlation between US Dollars and the CRB Index is one of the most reliable correlations out there. So if this Dollar continues to strengthen, I would expect more weakness out of the commodities market. Here is a chart of the US Dollar Index compared to the performance of the CRB Index, which consists of 19 traded commodities:
11-11-13 USD vs CRBNotice the recent decline in the CRB as the Dollar breaks out of this four-month downtrend. As mentioned before, this is one of the most reliable negative correlations across the intermarkets. I have to believe that it’s due to the simple reason that these commodities are all priced in US Dollars (i.e. Oil = $94/Barrel).
So here is the US Dollar Index breaking out of its downtrend. With the Euro weak coming off that key February resistance, it looks to me like the Dollar still has more upside. That shouldn’t be too positive for commodities going forward:
11-11-13 dx
How will this affect the stock market? Will it?
Please share this article

Marc Faber Is Back: “It Will End Badly… We’re In A Worse Position Than 2008″

It will end badly,” Marc Faber explains in this brief CNBC clip, “the question is whether we will have a minor economic crisis and then huge money printing or get into an inflationary spiral first.” If you thought that “we had a credit crisis in 2008 because we had too much credit in the economy,” then Faber notes “there is that much more credit as a percent of the economy now.” Of course, as Bill Fleckenstein recently noted, as long as stocks are rising, investors remain blinded by the exuberance, but as Faber concludes, “we are in a worse position than we were back then,” and inflation is already here…

Please share this article

Ironwood Pharmaceuticals, Inc. (NASDAQ: IRWD)

Ironwood Pharmaceuticals, Inc., an entrepreneurial pharmaceutical company, discovers, develops, and commercializes human therapeutic products. The company's lead product candidate, linaclotide, a guanylate cyclase type-C agonist for irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (CIC) gastrointestinal disorders under the LINZESS name in the United States and Constella name in the European Union. It also has a pipeline focused on the research and development of early development candidates and discovery research programs in various therapeutic areas, including gastrointestinal diseases, central nervous system disorders, allergic conditions, and cardiovascular diseases. Ironwood Pharmaceuticals has collaboration and license agreements with Forest Laboratories, Inc.
Please take a look at the 1-year chart of IRWD (Ironwood Pharmaceuticals, Inc.) below with my added notations:
1-year chart of IRWD (Ironwood Pharmaceuticals, Inc.) This stock is very simple. IRWD had held a very important level of support at $10 (blue) for the entire year. Regardless of what the market has or has not down over that period of time, the stock had never broken that level. Well, earlier this week IRWD broke below the $10 support and should be moving overall lower from here.

The Tale of the Tape: IRWD had a key level of support at $10. Now that the stock has broken support, a trader might want to enter a short trade at or near the $10 level with a stop placed above that level. A break back above $10 would negate the forecast for a move lower.
Please share this article