Monday, December 22, 2014

Saudi Arabia Refuses To Cut Oil Output Even If Non-OPEC Members Do / by Tyler Durden on 12/21/2014 12:45  
As even Reuters observes this morning when discussing the ongoing crude rout, “the market slide has triggered conspiracy theories, ranging from the Saudis seeking to curb the U.S. oil boom, to Riyadh looking to undermine Iran and Russia for their support of Syria.” It appears said theories will continue raging for a long time, because as Saudi Arabia’s oil minister who has been extensively in the news in the past couple (that means “two” as per Janet Yellen) of month explained, the biggest OPEC oil producer said on Sunday it would not cut output to prop up oil markets even if non-OPEC nations did so, in one of the toughest signals yet that the world’s top petroleum exporter plans to ride out the market’s biggest slump in years, and that the price of crude is not going up any time soon.
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Eaton Corp plc (NYSE: ETN)

Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical components, industrial components, residential products, single phase power quality, emergency lighting, fire detection, wiring devices, structural support systems, circuit protection, and lighting products. The company’s Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality, hazardous duty electrical equipment, intrinsically safe explosion-proof instrumentation, utility power distribution, power reliability equipment, and services. The Hydraulics segment offers power products, controls and sensing products, and fluid conveyance products, as well as filtration systems solutions, heavy-duty drum and disc brakes, and golf grips. The Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use. The Vehicle segment designs, manufactures, markets, and supplies drivetrain and powertrain systems, and critical components that reduce emissions and enhance fuel economy, stability, performance, and safety of cars, light trucks, and commercial vehicles.
Take a look at the 1-year chart of Eaton (NYSE: ETN) below with my added notations:
1-year chart of Eaton (NYSE: ETN)
ETN started off 2014 by trading mostly sideway, but eventually the stock fell of a cliff in July, and then again in September and October. However, ETN has rallied nicely since that October low. During the entire year, the stock has also made a habit of finding either support or resistance at $70 (purple). A break above that level now should mean higher prices for the stock.

The Tale of the Tape: ETN has a key level of resistance at $70. 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 $70.
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This Week in Money with Guests: Ross Clark, Victor Adair, John Mauldin

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Lightstream Resources Given Average Rating of “Hold” by Brokerages (TSE:LTS)

Shares of Lightstream Resources (TSE:LTS) have been given a consensus recommendation of “Hold” by the twelve ratings firms that are presently covering the stock, AnalystRatings.Net reports. Five equities research analysts have rated the stock with a sell recommendation and six have assigned a hold recommendation to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is C$4.47.

Several analysts have recently commented on the stock. Analysts at TD Securities downgraded shares of Lightstream Resources from a “buy” rating to a “reduce” rating in a research note on Friday. They now have a C$0.70 price target on the stock, down previously from C$4.50. Separately, analysts at RBC Capital downgraded shares of Lightstream Resources to an “underperform” rating in a research note on Wednesday. Finally, analysts at RBC Capital downgraded shares of Lightstream Resources from a “sector perform” rating to an “underperform” rating in a research note on Wednesday.

Shares of Lightstream Resources (TSE:LTS) traded down 10.07% on Wednesday, hitting $1.25. 3,948,302 shares of the company’s stock traded hands. Lightstream Resources has a 52 week low of $1.18 and a 52 week high of $9.09. The stock has a 50-day moving average of $2.4 and a 200-day moving average of $5.36. The company’s market cap is $250.8 million.
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Three Bad Investing Habits to Dump in 2015

The latest research from DALBAR is very graphic…
Over the past 20 years, individual investors averaged a measly 2.53% a year, versus the S&P 500, which chalked up 9.02%. In other words, your average annual return was 6.49% less than what it could have been each year. Ouch.

So what’s going on?
When you look back over the last two decades, two things are readily apparent – a) that the markets have been rocky and b) that there’s plenty of blame to go around. The Fed, the big banks, bubbles, China, Washington, Wall Street, the ECB… it doesn’t matter. At some level, they’re all guilty.  (more)

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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
10 am Existing home sales Nov.   5.18 mln 5.26 mln
8:30 am GDP Q3   4.5% 3.9%
8:30 am Durable goods orders Nov.   43.4% 0.3%
9:55 am Consumer sentiment Dec.   -- 93.8
10 am Personal income Nov.   0.5% 0.2%
10 am Consumer spending Nov.   0.5% 0.2%
10 am Core inflation Nov.   -- 0.2%
10 am New home sales Nov.   458,000 458,000
8:30 am Weekly jobless claims Dec. 20   N/A N/A
  Christmas Day
None scheduled
  None scheduled
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