Tuesday, March 4, 2014

Gold & Gold Mining Stocks Are In Rotation

In the past month we are now starting to see a new bull market start and that is in the precious metals sector (gold, silver and mining stocks). Also we see commodities as a whole showing signs of a bull market. Commodities tend to perform the best when the US stock market is nearing a major top.
After exiting my gold investments in August 2011, gold and the entire precious metal sector has been in a large correction phase within its cyclical bull market.  Crude oil has also been trading sideways for years. Because of this I have not been active in trading or investing in these two commodities.

Anyway, with that said, lets jump into some gold forecast and gold stock analysis because precious metals are firing up again and there are some big opportunities in 2014 emerging as we speak.
All trading and investing strategies should be based around trading with the underlying market trend. The best way to understand and identify what trend the market is in is through stage analysis. This theory because popular by Stan Weinstein as he explained how the market trades in four different stages.
Gold and It’s Market Stage Analysis:

The key to investing is to be buying and holding investments which are starting a new bull market (Stage 1 & 2). You don’t want to be holding securities that are in a stage 3 or stage 4. Investing in overpriced assets that are showing signs of a market top similar to the 2000 technology sector, and 2008 financial crash is not where new investment capital should be put to work.
Most investors only focus on the major indexes to gauge the market strength and ignore other asset classes. But knowing that there is almost always a new bull market starting whether in a stock, sector, world index, commodity, real estate, bonds, or currency etc. So it only makes sense to rotate money out of mature markets and into new fresh investments that show growth potential.
Money Is Rotating Into Gold Stocks
In the last two months we have seen gold mining stocks surge in value and the best way to gauge this is through the $HUI gold bugs index chart.
While the SP500 index shown in the upper half of the chart with its broadening price pattern and rising volatility, we can see the $HUI index has turned bullish and is actually the strongest sector in 2014 thus far.

Reasons Why My Gold Forecast Is For Higher Prices:
• Issues in Ukraine could lead to a disaster and this crisis could send gold soaring as a fear trade. Gold    typically rallies during a war…
• Since December Gold formed a series of higher lows and highs.
• Gold Weekly and Monthly Chart has broken breaking above my downtrend-line.
• The daily gold chart is above the 150 SMA. The bulls clearly remain in control at this time.
• China´s Gold imports are up over 30% compared to Hong Kong this past January. The sharp drop in the Chinese Yuan was likely a big contributing factor.
• Gold being a hedge against inflation, the strong rise in commodities this year could trigger higher than expected inflation in 2014.
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Gray Clouds Loom Over Ethanol Industry in 2014

There’s no doubt that 2013 was a banner year for ethanol producers, such as Archer Daniels Midland (ADM), Valero Energy (VLO) and Green Plains Renewable Energy (GPRE).
Last year, the profit margins in the $44-billion ethanol business were at the highest level since the 2007 Renewable Fuel Standard was implemented. At times, profits were as high as $1 per gallon of fuel produced, with an average of $0.81 per gallon!
Ethanol producers owed the boom to increasing demand and a three-year low in the price of corn. Demand was high for not only ethanol, but also the dried distillers grains (DDG), a co-product of dry mill ethanol production, which is used as animal feed.
But there are a few – three, to be exact – gray clouds on the horizon that might adversely impact the industry.  (more)

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Nordson Corporation (NASDAQ: NDSN)

Nordson Corporation engineers, manufactures, and markets products and systems for dispensing and processing adhesives, coatings, polymers, sealants, biomaterials, fluid management, testing and inspection, surface treatment, and curing. The company operates in three different segments: The Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems segments . The company markets its products in the United States and internationally through direct sales force, distributors, and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.
Please take a look at the 1-year chart of NDSN (Nordson Corp.) below with my added notations:
1-year chart of NDSN (Nordson Corp.)
There are two prices in particular that standout on NDSN. The first is the 52-week high resistance at $75 (blue). The other is the $70 level (green) that was a key support in October, November and December. Now that the stock has gotten back above the $70 level, a run to $75 could be in the cards. A decline back below that level should mean new lows for NDSN.

The Tale of the Tape: NDSN has key levels of $70 and $75. A long trade could be made at $70, or on a break through $75, with a stop placed below the level of entry. However, if the stock were to break below $70 traders might want to look to get short on the stock.
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Electric Vehicle Stock Could Make You Big Money (and It's Not Tesla): Kandi Technologies (NASDAQ: KNDI)

One of the biggest success stories in the market over the past several years is the amazing performance of electric car pioneer Tesla Motors (NASDAQ: TSLA). That company's shares have delivered a mighty 625%-plus gain over the past 12 months, and the stock has shown no real signs of slowing down.
Yet many traders and investors I know have already made big money in Tesla, and they're now looking for peripheral electric car plays with the potential for Tesla-like returns.
Enter Kandi Technologies (NASDAQ: KNDI).
This China-based company is a maker of vehicles such as ATVs, motorcycles and other small utility vehicles, including electric cars. And while its vehicles don't approach the high-tech, luxury level of a Tesla Model S, they are in demand in China, and that demand is expected to continue in the years to come.  (more)

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Three Bioscience Breakthroughs You Can't Afford to Miss

You can make huge gains investing in a breakthrough drug, but you can do even better putting your money into a new, cutting-edge technology platform that can fuel a company's entire pipeline.
One biotech I recommended to my BioScience Millionaire subscribers last July, Sangamo Biosciences Inc. (Nasdaq: SGMO), has developed a technology from naturally occurring molecules, called zinc finger proteins (ZFPs), that scientists can engineer to edit specific genes in the human genome. It can cut them out, replace them, or add new ones - in other words, it plays with the basic building blocks of life as if they were Lego pieces!
Sangamo is currently using ZFP technology to find cures for some of the most intractable - and often un-druggable - diseases we know of, including HIV, Alzheimer's, Huntington's, and Down's syndrome to name a few. (more)

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