Thursday, October 30, 2014

Chevron Corp. (NYSE: CVX): Time to Buy This Natural Gas Stock

Now's a perfect time to buy into our favorite natural gas stock, as another part of the energy sector continues to slump…
You see, while energy stock bears point to the dismal performance of oil stocks as a reason to leave the sector entirely, they're wrong.
It's true oil stocks have been hit hard. Oil prices have tanked since June, down 21%. WTI and Brent crude both hit multi-year lows this month.
U.S. oil drillers like EOG Resources Inc. (Nasdaq: EOG) and Continental Resources Inc. (NYSE: CLR) have fared poorly despite surging production. Those two stocks are down 18% and 26% respectively from summer highs. Even Exxon Mobil Corp. (NYSE: XOM) stock is down 9% since June.
But while prices dip in the crude oil market, Money Morning's Global Energy Strategist Dr. Kent Moors predicts natural gas prices will climb as we reach the winter months.
"With natural gas, the NYMEX price was above $4 per 1,000 cubic feet (or million BTUs) in early October," Moors said. "As we move into a winter heating cycle, that should push prices closer to $4.50."
Natural gas at $4.50 would be an increase of nearly 23% from today's price of $3.65 per million BTUs. (more)

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Soybean Meal Heads for Biggest Monthly Gain in 40 Years

Freight trains aren’t getting food to chickens fast enough, sending prices for livestock feed made from soybeans toward the biggest monthly gain in 40 years.
Soybean-meal futures have jumped 33 percent this month as meat prices close to record highs spur feed demand and shipping delays tighten supplies from Midwest processors. Weekly train speeds fell last week to the lowest since April 2010 while waiting times at terminals rose to the highest since July, data from the Association of America Railroads show. (more)

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Drilling Deep for Oil: Alpert, Barnett, Katusa, and Verleger

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Why Lower Gas Prices Are NOT “Bullish Indicators”

by James Rickards
Daily Reckoning

[Ed. Note: Our resident currency maven, Jim Rickards was recently interviewed on RT's Boom and Bust by Erin Ade, to discuss supposed "bullish indicators" in the U.S. economy, the need for another financial crisis in Europe, and why central banks are mostly "impotent." Below is a summarized transcript on some of his main points...]
I don’t think the data is bullish at all.
Lower gas prices put more money in consumers’ pockets.
But there’s an alternative to spending… Which is saving or reducing debt – which is the same thing.
I don’t consider these bullish indicators. They tell me an economy is running out of steam.
Continue Reading at…
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Eric Hadik – We Are at The End of a 40 Year Cycle

from Financial Survival Network
Eric S. Hadik is a trader & analyst who has been intimately involved with the markets for nearly 25 years. His first introduction to technical analysis came through Fibonacci Mathematics and the Elliott Wave Principle and he began trading in 1982.
However, it was not until he discovered the works of W.D. Gann and Gann’s integration of Biblical and natural cycles that Eric knew he had discovered his life’s passion and purpose. We spoke with him about the significance of cycles and he related to us about the key 40 year cycle and it’s connection to the history of monetary debasement in America. A must listen!
Click Here to Listen to the Audio
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No Plans for Normalization: Fed Ends QE, Will Hold Rates Low for “Considerable Time”, Will Reinvest Proceeds / Mike “Mish” Shedlock / October 29, 2014
Inquiring minds may wish to slog through today’s FOMC Press Release on Monetary Policy but it’s really not worth the time it takes to read it.
Here are a few details, generally expected
  • The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program.
  • The Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate.
  • The Committee anticipates, based on its current assessment, that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program this month, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.
  • If incoming information indicates faster progress toward the Committee’s employment and inflation objectives than the Committee now expects, then increases in the target range for the federal funds rate are likely to occur sooner than currently anticipated. Conversely, if progress proves slower than expected, then increases in the target range are likely to occur later than currently anticipated.
  • The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.
Reinvesting Principal Payments
The Fed also released a Statement Regarding Purchases of Treasury Securities and Agency Mortgage-Backed Securities.
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