Friday, June 20, 2014

Legend Warns Of World Economic Crash & Oil Spike To $250 / June 19, 2014
Today a legendary trader and investor warned King World News that the world is in danger of seeing the oil price soar to $250.  He also warned this will crash the world economy and collapse confidence in the financial system and currencies.  Victor Sperandeo has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros.  Another legend, hedge fund manager Paul Tudor Jones, said, “Victor Sperandeo is gifted with one of the finest minds I know.  No wonder he’s compiled such an amazing record of success as a money manager.” Below are the dire warnings issued by Sperandeo.
Continue reading the Victor Sperandeo interview below…
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Rare Earth Metals Staging a Comeback?

The market for rare earth metals represents the ultimate paradox.
Rocketing prices a few years ago sent manufacturers scrambling for lower-cost alternatives, causing the bottom to fall out of virtually every rare earth mining stock.
The weakest junior miners were forced to shutter their doors.
But a 60% spike in praseodymium prices is a surefire signal that demand is back.
Hold your applause, though…(more)

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Trimble Navigation Limited (NASDAQ: TRMB)

Trimble Navigation Limited designs and distributes positioning products and applications enabled by global positioning system (GPS), optical, laser, and wireless communications technology. It serves agriculture, architecture, civil engineering, construction, environmental management, government, natural resources, transportation, and utilities industries through dealers, distributors, and authorized representatives worldwide. The company was founded in 1978 and is headquartered in Sunnyvale, California.
To review Trimble’s stock, please take a look at the 1-year chart of TRMB (Trimble Navigation Limited) below with my added notations:
1-year chart of TRMB (Trimble Navigation Limited)
Since August of last year TRMB has grinded its way higher. Over the last 3 months though, the stock has formed a key level of resistance at $40 (red). That resistance is also a 52-week high resistance. After a sharp drop back in May, the stock appears to be headed back up towards its $40 resistance.

The Tale of the Tape: TRMB has a $40, 52-week high resistance level to watch. A long trade could be made on a break above that $40 with a stop placed below it.
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Amazon AMZN Buy Sell or Hold?

With the recent announcement of Amazon’s new phone, shares initially surged but then retraced all the gains today.
Let’s step above the noise and chart a bullish breakout pathway but also balance this expectation with the broader downtrend and potential breakdown bearish price pathway.
We’ll plan trading strategies based on the current price levels and targets.
AMZN Amazon Weekly Chart Price Pathway and Trade Planning
Starting with the Weekly Chart, we can see the broader price pathway depending on what happens at the current level.
Shares retraced in an “ABC” retracement down from the $400 per share level and now challenge the underside of the 20 and 50 week EMA confluence near the $330.00 per share level.
The current two candles are bearish reversal candles – like shooting stars – with upper shadows scraping against $340.00 per share.
We also saw distribution volume – or strong sell volume – during the 2014 multi-month retracement.
The weekly chart suggests a potential downside pathway away from $340 toward the $300 or even $290 levels.
Before we expect downside action, let’s study bull and bear price pathways as seen on the Daily Chart:

The “Neutral Zone” or focal point is the yellow highlight between the $320 and $335/$340 levels.
We would look to deploy bearish strategies (in alignment with the weekly chart) on a trigger-break under the $320 trendline and 20/50 day EMA support level – a breakdown here would simply target $300 per share then the $290 level.
Otherwise, a trend reversal and bullish breakout price pathway quickly opens above the $340 and $345 per share.
Any clean bullish upside break suggests shares will travel the bullish pathway through “Open Air” toward the prior high from March near $380 per share.
For now, focus on the yellow “neutral” range and be eager to deploy bullish breakout strategies above $345 or else bearish protective strategies under $320.
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Steel Market About To Rally

A few days ago I talked about how commodities tend to perform well near the end of a bull market in the United States stock market. I also pointed out which hot index was going to benefit from this.

In this article I want to bring your attention to the steel market. Using the SLX Steel ETF you can clearly see the bottoming pattern and basing pattern for this commodity.
Currently steel is underperforming the stock market and is vulnerable to lower prices. But if we see a few things come together in the coming days or weeks, this could be a screaming buy.

My technical take on steel is this:

SLX has formed a bottoming pattern from January – mid March. It has since put in a strong impulse rally to make a higher high, and is now consolidating above key support. The RSI (Relative Strength) remains in a down trend, but if this starts to rise and SLX breaks above its recent highs around the $47.75 level I feel steel will start to rally with $50 being the next major whole number and previous high for steel to find some resistance.
Also price has been riding along the 200 day moving average which is acting as support. If price closes a couple of days below the 200 moving average I would consider this to be a bearish sign.

Steel Trading Conclusion:

In short, we are looking for the relative strength to start making new highs. Also we want to see a reversal bar on the SLX chart to the upside which we got on Tuesday. Or you can wait for a breakout and close above $47-48 area. Stop would be somewhere around the $45.75 area to start, then raise it as price rallies using intraday pivot lows on the 30 minute chart.
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