Friday, December 19, 2014

Universal Health Services, Inc. (NYSE: UHS)

Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. The company’s hospitals offer various services, including general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and/or behavioral health services.
Take a look at the 1-year chart of Universal (NYSE: UHS) below with my added notations:
1-year chart of Universal (NYSE: UHS)
UHS rallied nicely from April up until September before starting to trend lower into November. Since that November low, UHS has steadily rallied higher. Twice over the last 2 months the stock has resistance at $110 (blue), and that $110 has been a key price in the past as well. A break above $110 should mean a run back up to the 52-week high resistance at $115 (red).

The Tale of the Tape: UHS has a key level of resistance at $110. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $110.
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2015 Predictions – Doom Is Always 6 Months Away

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Crude Prices Pump-And-Dump After Saudi “Temporary Problem” Comments / by Tyler Durden / 12/18/2014 10:17
Saudi Oil Minister al-Naimi says it is “difficult, if not impossible” for OPEC or Saudi to give up market share by cutting crude production, and data confirmed Saudi crude oil exports rose to 6.897mln bpd in October, up from 6.722mln bpd in September. This was then followed by the UAE Oil Minister confirming OPEC will not change output levels and has no intention of holding an emergency OPEC meeting. However, the crude complex got a boost by ignoring this and anchoring on al-Naimi’s comments that, as Bloomberg reports, the global oil markets are experiencing “temporary” instability caused mainly by a slowdown in the world economy, sabre-rattling that increased supply from regions outside OPEC (cough US cough), where oil-production costs are higher, is affecting the market.
Oil prices jumped from $56.50 to briefly break above $59 (as it did yesterday in its spike) before giving it all back…

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Insys Therapeutics Inc (NASDAQ: INSY)

Insys Therapeutics, Inc., a commercial-stage specialty pharmaceutical company, develops and commercializes supportive care products. It focuses on utilizing its proprietary formulation technologies to address the clinical shortcomings of existing commercial pharmaceutical products. The company markets Subsys, a proprietary sublingual fentanyl spray for breakthrough pain in opioid-tolerant cancer patients; and Dronabinol Oral Solution, a proprietary orally administered liquid formulation of dronabinol. It offers its Subsys through its incentive-based commercial sales force.
Take a look at the 1-year chart of Insys (Nasdaq: INSY) below with my added notations:
1-year chart of Insys (Nasdaq: INSY)
INSY peaked last March at $58 and lost over 60 percent of its value from there. The stock based out over the next (3) months, started to rally from there, and all the while has hit a very important level of resistance at around $42.50 (red). No matter what the market has or has not done since April, INSY has not been able to break through that area of resistance.

The Tale of the Tape: INSY has a key level of resistance at $42.50. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $42.50.
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Bankers See $1 Trillion of Zombie Investments Stranded in the Oil Fields

There are zombies in the oil fields. 

After crude prices dropped 49 percent in six months, oil projects planned for next year are the undead -- still standing upright, but with little hope of a productive future. These zombie projects proliferate in expensive Arctic oil, deepwater-drilling regions and tar sands from Canada to Venezuela.

In a stunning analysis this week, Goldman Sachs found almost $1 trillion in investments in future oil projects at risk. They looked at 400 of the world's largest new oil and gas fields -- excluding U.S. shale -- and found projects representing $930 billion of future investment that are no longer profitable with Brent crude at $70. In the U.S., the shale-oil party isn't over yet, but zombies are beginning to crash it.

The chart below shows the break-even points for the top 400 new fields and how much future oil production they represent. Less than a third of projects are still profitable with oil at $70. If the unprofitable projects were scuttled, it would mean a loss of 7.5 million barrels per day of production in 2025, equivalent to 8 percent of current global demand.
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