Thursday, June 5, 2014

Top 8 Reasons To Be Nervous About Stocks At These Levels

As if we didn’t already have enough to worry about: Here's this week's list of the Top-8 reasons why traders should be a little nervous about stocks at these levels.

1. Low volume: Lowest four volume days of the year for the S&P 500 have occurred in the past 10 trading days.
2. Low VIX: Even with the slight bump up recently, VIX is still trading below 12 and at lowest levels since 2007 (except a brief drop in March 2013).
3. 10 days in a row up: S&P E-Mini Futures have closed higher 10 days in a row.
4. 396 days above 200 Day Moving Average: Second longest streak in past 20 years. Record is 525 days in 1998.
5. Tight credit spreads: Junk bond yields to Treasuries are approaching historic lows. There is hardly any reward for much greater risk.
6. GDP negative last quarter: And without the Obamacare bump, this likely would've been even worse.
7. QE being wound down: Free money party nearer the end than beginning.
8. Complacency: "So what?" traders exclaim after reading the first 7 reasons.

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Larry Arnn: The Battle for Liberty on McAlvany Commentary

McalvanyFinancial, Published on Jun 3, 2014
This Week: Interview begins at 1:56
Dangers to Liberty & Property Rights
The Shift of Educational Pathways
Revolutions on the Horizon
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3 Beaten-Down Biotech Stocks That Could Double

Officers and directors of the nation's smallest and youngest biotech companies can look up their stock quotes once again.
Stocks in the sector were in such rapid freefall a few months ago that a glance at the stock price chart became too painful to bear.
How painful was the sell-off?
Biotech stocks
I counted 30 biotech stocks that shed at least 40% of their value in the past three months, with half of them plunging by more than 50%.  (more)

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David Stockman – This Meltdown Will Be More Violent Than 2008

from King World News
Today David Stockman warned King World News that the coming meltdown will be even more violent than the catastrophic one the world witnessed in 2008. KWN takes Stockman’s warnings very seriously because he is the man former President Reagan called on in 1981, during that crisis, to become Director of the Office of Management and Budget and help save the United States from collapse. Below is what Stockman, author of the website contracorner, had to say in part I of a series of powerful interviews that will be released today.
Eric King: “David, what do you see as the great danger facing the world today?”
Stockman: “The biggest danger is that the central banks will lose control of this coiled financial cobra that they have created in the financial system of the world….
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Under Armour Inc (NYSE: UA)

Under Armour, Inc., together with its subsidiaries, develops, markets, and distributes branded performance apparel, footwear, and accessories for men, women, and youth primarily in North America, Europe, the Middle East, Africa, Asia, and Latin America. The company offers its apparel in compression, fitted, and loose types to be worn in hot, cold, and in between the extremes. It offers various footwear products, including football, baseball, lacrosse, softball and soccer cleats, slides, performance training footwear, running footwear, basketball footwear, and hunting boots. The company also provides accessories, which include headwear, bags, and gloves; digital fitness platform licenses and subscriptions, as well as digital advertising; and licenses its brands.
Please take a look at the 1-year chart of UA (Under Armour, Inc.) below with my added notations:
1-year chart of UA (Under Armour, Inc.)
UA started off the year quite well having gone from around $42 all the way up to $62. However, the stock has since then given a lot of it back. Along the way, the stock has found support and resistance areas primarily at the levels of $45, $50, $55, and $60 (blue). Each of those prices has been either support or resistance, or even both, multiple times. The stock is now trading back above the $50 level.

The Tale of the Tape: UA has just broken back above $50. A long trade could be made on a pullback to $50 or on a break above $55. A short trade could be made at on a break back below $50.
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