What’s Wrong With Energy Stocks?

There has been some heavy selling in the energy names over the past month. I do a weekly review of all 30 Dow components using multiple timeframes, and it’s hard to find 2 worse names in the group than Exxon and Chevron. Both of them are making new lows on a relative basis and continue to disappoint in price itself also. These guys are obviously the biggest names in Energy, so it shouldn’t be surprising to see the Sector itself struggle. But what’s most interesting is that we are now back below the highs from 2008, which is a big problem.
Here is a weekly bar chart of $XLE the SPDR Energy Sector ETF. It’s very clear what is going on: in the Spring prices broke out to new all-time highs, but were unable to hold on to them. This week prices officially broke down back below those levels. This puts energy on “Failed Breakout” watch, which could mean trouble. In situations like these, particularly in a very strong uptrend, which this has been since 2009, a quick reversal back above the 08 highs would invalidate any bearish developments. However, any kind of downside follow through this week would confirm exactly what we’re worried about:

The old saying is that, “From failed moves come fast moves in the opposite direction”. In this case, a failed breakout could bring heavy selling in Energy as the relative strength has already been warning about. Here is a chart of Energy relative to the S&P500. Look at this thing hitting new lows as other sectors like Healthcare break out to new highs: (more)
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Warren Buffett Buys An Auto Dealer - Here Are 5 Top Dividend Paying Alternatives: PAG, GPI, LAD, SAH, AAP

Yesterday, news jumped into the market: The oracle of Omaha, Warren Buffett the mastermind behind the investment holding Berkshire Hathaway, bought an auto dealer. What - Auto and Dealer?

Yes, Buffett acquired an auto dealer. He still owns shares of car manufacturer General Motors and adds a fully business from the distribution site. The company named Van Tuyl Group and generated sales of just under USD 8 billion.

Van Tuyl Group says it is the biggest privately owned auto dealership group in the U.S. It has 78 independently operated dealerships and more than 100 franchises in 10 states. The company will be renamed Berkshire Hathaway Automotive and be based in Dallas.

The deal comes amid ongoing consolidation in the industry. Publicly traded giants, including Florida-based AutoNation and Oregon-based Lithia Motors have been snapping up smaller retail chains, often run by families who have been selling cars for generations.

- See more at: http://long-term-investments.blogspot.co.uk/2014/10/warren-buffett-buys-auto-dealer-here.html#sthash.7GE74iZn.dpuf

Yesterday, news jumped into the market: The oracle of Omaha, Warren Buffett the mastermind behind the investment holding Berkshire Hathaway, bought an auto dealer. What - Auto and Dealer?

Yes, Buffett acquired an auto dealer. He still owns shares of car manufacturer General Motors and adds a fully business from the distribution site. The company named Van Tuyl Group and generated sales of just under USD 8 billion.

Van Tuyl Group says it is the biggest privately owned auto dealership group in the U.S. It has 78 independently operated dealerships and more than 100 franchises in 10 states. The company will be renamed Berkshire Hathaway Automotive and be based in Dallas.

The deal comes amid ongoing consolidation in the industry. Publicly traded giants, including Florida-based AutoNation and Oregon-based Lithia Motors have been snapping up smaller retail chains, often run by families who have been selling cars for generations.

- See more at: http://long-term-investments.blogspot.co.uk/2014/10/warren-buffett-buys-auto-dealer-here.html#sthash.7GE74iZn.dpuf

Yesterday, news jumped into the market: The oracle of Omaha, Warren Buffett the mastermind behind the investment holding Berkshire Hathaway, bought an auto dealer. What - Auto and Dealer?

Yes, Buffett acquired an auto dealer. He still owns shares of car manufacturer General Motors and adds a fully business from the distribution site. The company named Van Tuyl Group and generated sales of just under USD 8 billion.

Van Tuyl Group says it is the biggest privately owned auto dealership group in the U.S. It has 78 independently operated dealerships and more than 100 franchises in 10 states. The company will be renamed Berkshire Hathaway Automotive and be based in Dallas.

The deal comes amid ongoing consolidation in the industry. Publicly traded giants, including Florida-based AutoNation and Oregon-based Lithia Motors have been snapping up smaller retail chains, often run by families who have been selling cars for generations.

- See more at: http://long-term-investments.blogspot.co.uk/2014/10/warren-buffett-buys-auto-dealer-here.html#sthash.7GE74iZn.dpuf

Yesterday, news jumped into the market: The oracle of Omaha, Warren Buffett the mastermind behind the investment holding Berkshire Hathaway, bought an auto dealer. What - Auto and Dealer?

Yes, Buffett acquired an auto dealer. He still owns shares of car manufacturer General Motors and adds a fully business from the distribution site. The company named Van Tuyl Group and generated sales of just under USD 8 billion.

Van Tuyl Group says it is the biggest privately owned auto dealership group in the U.S. It has 78 independently operated dealerships and more than 100 franchises in 10 states. The company will be renamed Berkshire Hathaway Automotive and be based in Dallas.

The deal comes amid ongoing consolidation in the industry. Publicly traded giants, including Florida-based AutoNation and Oregon-based Lithia Motors have been snapping up smaller retail chains, often run by families who have been selling cars for generations.
(more)
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Mining Shares Go Negative on the Year

by Dan Norcini
Trader Dan Norcini
It comes as no surprise that the mining shares, as evidenced by the HUI and the junior-laden GDXJ have now gone negative on the year. The theme remains the same as it has for some time now – Western-origin investment demand in the gold sector is non-existent.
In an environment in which the US Dollar is King of the Mountain once more, commodities are being jettisoned and inflation pressures are collapsing, gold has few friends except for the perma gold bulls.
For starters, let’s first look at the Goldman Sachs Commodity Index to show the impact from a strong Dollar.
Continue Reading at TraderDanNorcini.Blogspot.ca…
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EXACT Sciences Corporation (NASDAQ: EXAS)

Exact Sciences Corporation, a molecular diagnostics company, focuses on developing diagnostic screening products for the early detection and prevention of colorectal pre-cancer and cancer. The company develops the Cologuard, a non-invasive stool-based DNA colorectal cancer-screening test that is designed to detect pre-cancerous lesions or polyps, and each of the four stages of colorectal cancer. Its Cologuard test includes proprietary and patented methods that isolate and analyze the human DNA that are shed into stool every day from the exfoliation of cells that line the colon; and also protein marker to detect blood in the stool, utilizing an antibody-based fecal immunochemical test. The company’s stool-based DNA colorectal cancer screening technology also focuses on the inflammatory bowel disease. It has collaboration, license, and purchase agreement with Genzyme Corporation, as well as with Mayo Clinic for developing tests to detect other gastro-intestinal cancers, primarily esophageal and pancreatic cancer.
Take a look at the 1-year chart of Exact (Nasdaq: EXAS) below with my added notations:

Over the last 5 months EXAS has consistently moved higher. During that time the stock had also formed a nice trend line of support (blue). Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. So, you can see that EXAS’ trendline is very important. Yesterday the stock broke the support.

The Tale of the Tape: EXAS has broken below trend line support. A short position could be entered on a rally up to the trendline, which is currently near $19, with a stop placed above that level. A long position could be entered if EXAS were to break back above the trendline.
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The Keryx (Nasdaq: KERX) Media Blunder Will Add to Our 700% Gain

On August 29, 2012, shares of Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX), a company focused on pharmaceutical products for patients with renal disease, closed for the day's session at $2.06. Exactly two years later, on August 29, 2014, the same stock closed at $18.19.
That's right. Investors made a 780% profit over their original position, and it looked like the price per share (PPS) was destined to climb considerably higher.
In fact, analysts had set their average first-year target for the stock at about $23. And there was every reason to believe KERX would reach and break through that target after the FDA approved it for marketing in the United States on its PDUFA date, set for September 7. (more)
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US Weekly Economic Calendar

time (et)	report	period	Actual	CONSENSUS forecast	previous
MONDAY, OCT. 6
c. 10 am	Labor market conditions index	Sept.		--	6.3 (May)
TUESDAY,  OCT. 7
10 am	Job openings	Aug.		--	4.7 mln
3 pm	Consumer credit	Aug.		--	$26 bln
WEDNESDAY, OCT. 8
2 pm	FOMC minutes
THURSDAY, OCT. 9
8:30 am	Weekly jobless claims	Oct. 4		N/A	N/A
10 am	Wholesale inventories	Aug.		--	0.1%
FRIDAY, OCT. 10
8:30 am	Import price index	Sept.		-0.5%	-0.9%
2 pm	Federal budget	Sept.			$75 bln

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