Monday, September 22, 2014

Precious Metals and JC Penney

I think we need to give JCP some time here before getting aggressively long again. But precious metals are just starting to break down and I believe there is still more downside left.

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Technician Richard Dickson: No Signs of a Major Top – Supply and Demand Pressures in Balance

Also, Ryan Puplava With the Market Wrap and Erik Townsend on Commodities
Jim welcomes back Richard Dickson, Chief Market Analyst at Lowry Research. Richard sees supply and demand pressures in relative balance, and no technical warnings of a major market top. He notes that the market is becoming increasingly more selective. Currently, the Consumer Cyclical and Financial sectors look attractive. Richard also notes that higher interest rates are not necessarily a bad thing for stocks. Also in this segment, Ryan Puplava has this week’s Market Wrap-up and Erik Townsend covers the commodity sector, with a particular focus on the oil markets and the strength of the U.S. dollar. 
Click Here To Listen
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Desperate Acts to Retain the Paper Monetary System / LongWave Group / September 21, 2014
Within the current global economic environment, central bankers – of the world’s developed economies and those of emerging markets alike – remain obsessed with the struggle to incorporate monetary policies which will engender renewed gross domestic product (GDP) growth in their respective economies.  These central bankers have been led by the example of the U.S. Federal Reserve, whose implementation of a multi-year quantitative easing program, i.e. the $4.5 trillion (U.S.) purchase of U.S Treasurys and mortgage-backed securities, has been coupled with the maintenance of historically low administered interest rates; such as the present 0% – 0.25% range for the Federal Funds Rate.  Complicating the global GDP growth challenge has been the persistent increase in the debt levels of many sovereign credits, once again led by the United States, whose national debt level now exceeds $16.8 trillion (U.S.) – that’s $16,800,000,000,000 (U.S.).  Within the context of the above, it behooves us to visit a few historic examples of paper money systems which, while well-marketed, met with an inglorious fate.        

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Pandora Media Inc (NYSE: P)

Pandora Media, Inc. provides Internet radio services in the United States. The company allows listeners to create up to 100 personalized stations to access free music and comedy, as well as offers Pandora One, a paid subscription service to listeners. It is also involved in the sale of displays, audio advertising, and video advertising products to advertisers for delivery on computer, mobile, and other connected device platforms.
Take a look at the 1-year chart of Pandora (NYSE: P) with the added notations:
1-year chart of Pandora (NYSE: P)
P has created a simple chart pattern known as a symmetrical triangle. Combining a down trending resistance (red) with an up trending support (blue) forms the triangle pattern. As the support and resistance converge on each other the pattern is created. Since there is no way to know which way the stock will break, most traders will wait for the breakout, or breakdown, before entering a trade.
The Tale of the Tape: P has formed a simple symmetrical triangle. A trader could enter a long position on a break above the down trending resistance (near $27.50) with a stop set under the entry level. However, if P were to break below the trend line support (currently just above $25), a short trade could be entered with a stop above the trend line.
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US Weekly Economic Calendar

time (et) report period Actual CONSENSUS
8:30 am Chicago Fed national activity index Aug.   -- 0.25 (3-month)
10 am Existing home sales Aug.   5.20 mln 5.15 mln
9 am FHFA home prices July   -- 5.1% yoy
9:45 am Markit "flash" PMI     -- 57.9
10 am New home sales Aug.   425,000 412,000
8:30 am Weekly jobless claims Sept. 20
300,000 280,000
8:30 am Durable goods orders Aug.   -16.5% 22.6%
8:30 am GDP revision Q2   4.7% 4.2%
9:55 am Consumer sentiment Sept.   84.5 84.6
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