Monday, January 12, 2015

Saudi Prince Warns “We Will Not See $100 Oil Again”, Calls Anti-Russia Conspiracy “Baloney” / by Tyler Durden on 01/11/2015 16:30
Speaking to his favorite money-honey, billionaire Saudi Prince Alwaleed bin Talal told Maria Bartiromo that the negative impact of a 50% decline in oil has been wide and deep. As USA Today reports, the prince of the Saudi royal family said that while he disagrees with the government on most aspects, he agreed with their decision on keeping production where it is, adding that “if supply stays where it is, and demand remains weak, you better believe it is gonna go down more. I’m sure we’re never going to see $100 anymore… oil above $100 is artificial. It’s not correct. On the theory that the US and the Saudis have agreed to keep prices low to pressure Russia, the prince exclaimed, that is “baloney and rubbish,” adding that, “Saudi Arabia and Russia are in bed together here… both being hurt simultaneously.”
Exceprted from USA Today,
Q: Can you explain Saudi Arabia’s strategy in terms of not cutting oil production?
A: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.
Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.
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Gogo Inc. provides in-flight Internet connectivity and wireless in-cabin digital entertainment solutions in the United States and internationally. The company, through its proprietary air-to-ground (ATG) network and satellite-based technologies, offers a suite of connectivity solutions and other services, including passenger connectivity, passenger entertainment, and operations-oriented communications services, as well as advertising, e-commerce, content, and other offerings, such as destination-based event ticketing, flight tracker, and weather and travel sites. The company operates in three segments: Commercial Aviation North America; Commercial Aviation Rest of World; and Business Aviation.
Take a look at the 1-year chart of GoGo (Nasdaq: GOGO) with the added notations:
1-year chart of GoGo (Nasdaq: GOGO)
GOGO has been trading mostly sideways since May of 2014. In addition, the stock has found support at $14.50 (blue) whenever that level has been approached. Now that the stock appears to be on its way down there again, traders should be able to expect some sort of bounce. However, if the $14.50 support were to break, much lower prices should follow.

The Tale of the Tape: GOGO has a key level of support at $14.50. A trader could enter a long position at $14.50 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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This Week in Money with Guests: Ross Clark, Ross Kay, Tim Wood – January 10, 2015

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4:1 Reward/Risk Gold Trade with GDXJ

Picking a bottom in any market is tricky, but trading is not about being right 100% of the time. It is about finding trades with good reward/risk profiles and exploiting them. As the lottery ad says, "You gotta be in it to win it."
Thankfully, technical analysis means we have immensely better odds of profiting than anyone playing the lotto.
GDXJ Chart
The gold market has been a widow maker for the past few years, as legions of bottom fishers have tried and failed to catch a falling knife. But now, gold mining stocks seem to be quite resilient and some are even bucking the trend in the U.S. dollar. (more)

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Large Speculators Returning to Gold – But with This Caveat

by Dan Norcini
Trader Dan Norcini

Here is the latest chart detailing the relationship between the Hedge funds NET POSITIONING in the Comex gold market and the price of the actual metal.
I have presented this chart for some time now over at my former website to rebut the silliness from the gold perma-bull camp that any moves lower in the price of gold are ALWAYS the result of “evil bullion banks working to suppress the price of the metal to discredit it”. That mindset had a place at one time – back when the US Dollar was sinking – but is now passé and an extreme waste of precious mental effort and time. The camp that has this as a central tenet of their “faith” has long ago lost any credibility on this issue among serious-minded investors/traders.
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US Weekly Economic Calendar

time (et) report period ACTUAL CONSENSUS
10 am Labor market conditions index Dec.   -- 2.9
9  am NFIB small business index Dec.   -- 98.1
10 am Job openings Nov.
-- 4.8 mln
2 pm Federal budget Dec.   -- $53 bln
8:30 am Retail sales Dec.   -0.2% 0.7%
8:30 am Retail sales ex-autos Dec.
0.0% 0.5%
8:30 am Import prices Dec.   -2.5% -1.5%
10 am Business inventories Nov.   0.4% 0.2%
8:30 am Weekly jobless claims Jan. 9   303,000 294,000
8:30 am Producer price index Dec.   -0.5% -0.2%
8:30 am Empire state index Jan.   5.0 -3.6
10 am Philly Fed Jan.   19.8 24.5
8:30 am Consumer price index Dec.   -0.4% -0.3%
8:30 am Core CPI Dec.
0.1% 0.1%
9:15 am Industrial production Dec.   -0.2% 1.3%
9:15 am Capacity utilization Dec.
79.8% 80.1%
9:55 am Consumer sentiment Jan.   95.0 93.6
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