Wednesday, March 12, 2014

Wheat: Buy Sell or Hold?

Here is a chart that I think is worth bringing up simply to show that trendlines matter. They matter big time. This is a weekly bar chart of Wheat going back to the lows in early 2005. Prices were literally crashing in December and into January. But then out of no where, we got a killer rally.
3-11-14 zw
When prices come down to significant levels like this, I think it’s worth paying attention to. But we can’t just buy something blindly. What’s going on in the short-term? In this case, prices were simultaneously putting in false breakdowns and bullish momentum divergences on the daily chart in early February:  (more)
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MSCI Inc., together with its subsidiaries, provides a suite of performance, risk management, and corporate governance products and services worldwide. The company operates in two segments, Performance and Risk, and Governance. The Performance and Risk segment offers investment decision support tools, including equity indices, real estate indices and benchmarks, portfolio risk and performance analytics, and credit analytics, as well as environmental, social, and governance products. The Governance segment provides corporate governance products and services to institutional investors and corporations. It offers global equity security coverage and fully integrated products and services, including proxy voting; policy creation, application, and management; research; vote recommendations; vote execution; post-vote disclosure and reporting; and data and analytical tools.
To review MSCI’s stock, please take a look at the 1-year chart of MSCI (MSCI, Inc.) below with my added notations:
1-year chart of MSCI (MSCI, Inc.)
Over the last 3-4 months MSCI had created a strong level of resistance at $45 (blue), which also constituted a 52-week high resistance. A breakthrough that level would most likely mean higher prices for the stock. As you can see from the chart, MSCI finally broke higher earlier this week and should be hitting new highs moving forward.

The Tale of the Tape: MSCI broke out to a new 52-week high. A long trade could be made near $45 with a stop placed below that level. A break back below $45 would negate the forecast for a continued move higher.
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A Secret 6% Yield From 3 Safe Blue Chips: PRH, SWJ, GSF

Income investors need not settle for the piddling yields many blue-chip stocks offer today.
With the right security, they can capture far greater yield. Better yet, they can capture this yield while reducing their risk.
That’s right. Higher yield and lower risk.
The right security I’m referring to is an exchange-traded note (ETD), which is an affordable debt instrument that is as easy to buy and sell as any share of common stock. And because an ETD is debt, it’s a contractual obligation to the issuing company. It has a higher claim to a company’s earnings and assets compared to common stock. (more)

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Is Now the Time to Invest in 3 of the Oil Patch’s Biggest Losers?: CPG, LTS, PWT, SGY, WCP

Despite the price of crude remaining above $100 per barrel, the bourse is littered with oil companies that have seen their share price tumble for the year to date. Three of the biggest losers are oil sands startup Sunshine Oil Sands (TSX:SUO), along with intermediate oil producers Surge Energy (TSX:SGY) and Whitecap Resources (TSX:WCP).

Is now the time to invest or will these companies share prices continue to soften? (more)

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Mosaic Company (NYSE: MOS) Stock is Gearing Up for a Big Breakout

Agricultural nutrients producer Mosaic Company (NYSE: MOS) popped back on my radar earlier this week as many of its competitors began breaking through near-term resistance areas on their respective charts.

On Feb. 11, MOS reported a drop in its fourth-quarter earnings. The company earned $129 million, or $0.30 per share, compared with $616 million, or $1.44 per share, a year ago. However, the stock responded with a 2.4% rally on the day, getting the ball rolling for a more meaningful breakout through resistance.

  The day after the earnings report, Morgan Stanley (NYSE: MS) reiterated its "equal weight" rating on the stock in a marginally upbeat note. (more)

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