Thursday, November 27, 2014

Charles Nenner: “Gold close to Major Bottom” McAlvany Commentary



McAlvany Financial, Published on Nov 26, 2014
http://mcalvany.com
-Alan Greenspan: “Gold to go Considerably Higher”
-Central Banks create Illusion of Security
-Nenner on Gold: Target is $2100, then $3500

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LinnCo LLC (NASDAQ: LNCO)

LinnCo, LLC, through its limited liability company interests in Linn Energy, LLC, focuses on the acquisition and development of oil and natural gas properties in the United States. The company was founded in 2012 and is headquartered in Houston, Texas.
Take a look at the 1-year chart of LinnCo (Nasdaq: LNCO) with the added notations
1-year chart of LinnCo (Nasdaq: LNCO)
Over the last 2 months, LNCO has been consolidating within a couple of short-term price levels. First, the stock has formed a clear support level at $20 (red). Next, the stock has also been forming a down trending resistance level (blue). These two levels combined have LNCO stuck within a common chart pattern known as a descending triangle that will eventually have to break one way or another.

The Tale of the Tape: LNCO is currently trading within a descending triangle. A long trade could be made on a break above the down trending resistance or a pullback to the $20 support. A short trade could be placed on LNCO if the stock breaks below the $20 support level.
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China’s Rate Cuts Spur Speculation

Nowadays, it seems like everyone claims they foresaw the magnitude of the collateral damage that hit after the U.S. housing bubble burst.
In reality, most people ignored the major warning signs.
In July 2007, Bear Stearns disclosed that two of its credit hedge funds with exposure to subprime mortgages had lost nearly all of their value.
Yet the S&P 500 didn’t peak until October 2007, well after problems in the mortgage market had begun to spread. And even then, most economists and strategists were clueless as to what would happen next.  (more)

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19 US Shale Areas That Are Suddenly Endangered, “The Shale Revolution Doesn’t Work At $80″

Despite the constant blather that lower oil prices are "unequivocally good" for America, we suspect companies working and people living these 19 Shale regions will have a different perspective...

Drilling for oil in 19 shale regions loses money at $75 a barrel, according to calculations by Bloomberg New Energy Finance. Those areas pumped about 413,000 barrels a day, according to the latest data available from Drillinginfo Inc. and company presentations.


“Everybody is trying to put a very happy spin on their ability to weather $80 oil, but a lot of that is just smoke,” said Daniel Dicker, president of MercBloc Wealth Management Solutions with 25 years’ experience trading crude on the New York Mercantile Exchange. “The shale revolution doesn’t work at $80, period.”
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Myriad Genetics, Inc. (NASDAQ: MYGN)

Myriad Genetics, Inc., a molecular diagnostic company, focuses on the development and marketing of predictive, personalized, and prognostic medicine tests in the United States and internationally. The company operates through three segments: Research, Molecular Diagnostics, and Pharmaceutical and Clinical Services.
Take a look at the 1-year chart of Myriad (Nasdaq: MYGN) with the added notations:
1-year chart of Myriad (Nasdaq: MYGN)
MYGN shot higher back in the beginning of the year, but has since traded sideways. You will notice that since March the stock has found support at $32 (blue) whenever that level has been approached. Now the stock is almost there again. Traders should be able to expect some sort of bounce, most likely up to $34 (red), and then $40 (green) if that resistance is broken.
However, if the $32 support were to break, much lower prices should follow.

The Tale of the Tape: MYGN has a key level of support at $32. A trader could enter a long position at $32, or on a break above $34, with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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