Monday, February 2, 2015

US Share Market – Potential Waterfall? :AE

The Dow on Friday closed closed below a Weekly Bearish Reversal. The main support begins under the market at 16300 level followed by 15961. The potential Waterfall is rather weak. Nonetheless, the oscillators are also turning negative. We still see a correction and basing into May. Keep in mind, that it is unlikely we will see a major crash for foreign capital will be buying the dips. Next week should provide a turning point. Volatility will rise from the week of 02/23 onward. Key support also lies at 16935-16970 level followed by 16680. A daily closing below 16975 should signal pressing a bit lower. Long-term support lies at the 14300 level for the year.

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Gas prices may double by year's end: Analyst

Enjoying those prices at the pump? You might not want to get used to them. A former top oil executive says the price of gas at the pump could double by the end of the year.

In an interview with CNBC, former Shell Oil President John Hofmeister predicts that U.S. oil could skyrocket from the current levels under $48 a barrel to $80 by this fall, just as consumers are getting used to the windfall from lower gas prices. That would force gas prices to double, from the current $2 to a whopping $4 by next winter. (more)
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Gold And Silver Price Probability for A Lower Low Has Increased

Mention is often made that one should wait for confirmation of a particular move in futures before making a commitment, either way. Last week, it appeared evidence was mounting that November could be a possible low for the correction since late 2011. Then, we run across this graph from which shows an inordinate build-up of short positions in silver by what we would call “smart money,” “insiders.”

These large traders do not make such overtly strong commitments to the short side without expectations that things will go their way. If anything can be said about the market manipulators, mostly the elite’s central bankers/Wall Street/Fed, it does not really matter as to accurate identity, for they hide their source[s] very well. What matters is the outcome from the effort, and to date, there has been a lot of “smashing” success in taking both silver and gold lower, at will, and with no opposition. (more)
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International Business Machines Corp. (NYSE: IBM)

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. International Business Machines Corporation was founded in 1910 and is headquartered in Armonk, New York.
Take a look at the 1-year chart of IBM (NYSE: IBM) with the added notations:
1-year chart of IBM (NYSE: IBM)
IBM had been trending sideways up until the stock’s large drop in October. The stock then tried to hold the $160 support (green), but the $165 resistance (red) won the day and IBM took another leg lower in December. Over the last 1-2 months the stock has been holding a 52-week low support at $150. A break of that level would most likely lead to much lower prices for IBM.

The Tale of the Tape: IBM has a key level of support at $150. A trader could enter a long position at $150 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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US Weekly Economic Calendar

time (et)reportperiodACTUALCONSENSUS
8:30 am Personal incomeDec. 0.3%0.6%
8:30 am Consumer spendingDec. -0.3%0.4%
8:30 am Core inflationDec. 0.0%0.0%
9:45 am Markit PMIJan. --53.7
10 am ISMJan. 55.0%55.1%
10 am Construction spendingDec. 0.7%-0.3%
10 amFactory ordersDec. -2.8%-0.7%
TBA Motor vehicle salesJan. 16.5 mln16.8 mln
8:15 amADP employment reportJan. --241,000
10 amISM nonmanufacturingJan. 56.5%56.5%
8:30 amWeekly jobless claimsJan. 31
8:30 amTrade deficitDec. -$38.5 bln-$39.0 bln
8:30 amProductivityQ4 -0.5%2.3%
8:30 amUnit labor costsQ4 1.2%-1.0%
8:30 amNonfarm payrollsJan. 245,000252,000
8:30 amUnemployment rateJan. 5.5%5.6%
8:30 amAverage hourly wagesJan. 0.3%-0.2%
3 pmConsumer creditDec. --$14 bln
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