Wednesday, April 30, 2014

Risk of 20% Stock Correction Highest Until October: B. of A.’s Suttmeier

by Wallace Witkowski
Market Watch

It’s becoming a drumbeat of investors wary of the big downturn: Traditional “Sell in May” weakness coupled with the midterm year of a presidential cycle makes the market fertile ground for a correction.
After all, stocks are creeping back up toward record highs during a historically vulnerable time for the market.
The latest comes from Stephen Suttmeier, technical research analyst at Bank of America Merrill Lynch, who points out there’s a more than 23% chance of the broader stock market shedding a fifth of its value sometime before October. Suttmeier notes:
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4 Penny Stocks for 2014: ELON, DVAX, IDIX

Penny stock investing is so attractive to investors because these small-cap stocks can bring huge gains in a short period of time.
Whether these small-cap companies are industry leaders in a burgeoning market, are primed for a takeover, or are developing new pharmaceutical patents, the best penny stocks of 2014 offer investors huge profit potential at affordable prices.
While there are often wild price fluctuations associated with penny stocks, investors on the right side of price swings can bank huge gains.  (more)

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Case-Shiller Has Longest Home Price Decline Stretch Since 2012; 13 Of 20 Cities See Price Drops / by Tyler Durden / 04/29/2014 09:22 -0400
What a difference Seasonally adjusted and Unadjusted data makes: for the best example look no further than the just released latest Case Shiller index, where the Seasonally Adjusted 20 City Composite Index grew by a less than expected 0.76% (Exp. 0.80%), down from the 0.80% last month, and the Year over Year price also missed expectations of a 13.00% increase, printing slightly less at 12.86%. However, while the well-delayed February data was a modest miss across the board, more importantly it represented that there has been price increases for 24 consecutive months. One gets a very different story if one looks at the NSA data, where Y/Y prices increased the same, or 12.86%, however on a sequential basis, prices have now declined for 4 months in a row – the longest negative stretch in actual home prices since March 2012.
What’s worse, even Case Shiller itself appears to have given up on housing as the driver of the wealth effect: “Five years into the recovery from the recession, the economy will need to look to gains in consumer  spending and business investment more than housing. Long overdue activity in residential  construction would be welcome, but is certainly not assured.”
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FireEye, Inc (NASDAQ: FEYE)

FireEye, Inc. provides products and services for detecting, preventing, and resolving advanced cybersecurity threats. Its products comprise threat prevention system that provides threat protection from network to endpoint for inbound and outbound network traffic, such as Web threat prevention appliances to analyze all Web traffic; email threat prevention appliances that detect and stop advanced attacks; and file threat prevention appliances, which analyze network file servers to detect and quarantine malicious software. The company’s products also include central management appliances that manage threat prevention system; forensic analysis system, which executes and inspects malware, zero-day, and other advanced cyber attacks; and endpoint threat prevention systems that detect, analyze, and resolve security incidents.
To review FireEye’s stock, please take a look at the 7-month chart of FEYE (FireEye, Inc.) below with my added notations:

The Tale of the Tape: FEYE has broken its key level of support at $45. A short trade could be made on any rallies up to that $45 area with a stop placed above that level. A break back above $45 would negate the forecast for a lower move.
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Time to Act: Pension Funds are Drying Up

by Peter Krauth, Resource Specialist
Money Morning

On numerous occasions, I’ve told you to remain on lookout for threats to your savings, including the proposed new MyRA account.
If you’ve been counting on your pension, whether from work or even Social Security, you may want to revise those plans, as most are way underfunded.
Research by Bridgewater Associates, the world’s largest hedge fund, estimates that 85% of public pensions could go bust within 30 years.
Public pension funds currently have about $3 trillion in assets, but will need to pay out nearly $10 trillion over the next several decades.
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