Friday, March 20, 2015

Paul Tudor Jones Warns This “Disastrous Market Mania” Will End “By Revolution, Taxes, Or War”

“This gap between the 1% and the rest of America, and between the US and the rest of the world, cannot and will not persist,” warns renowned trader Paul Tudor Jones during his recent TED Talks speech, as he addressed the question – can capital be just? Hoping to expand the “narrow definitions of capitalism,” that threaten the underpinnings of society, Tudor Jones exclaims, “we’re in the middle of a disastrous market mania,” adding “one of worst of my life.” Perhaps most ominously, he concludes, historically this ends “by revolution, higher taxes or wars. None are on my bucket list.”
As TED blog reports,
Can capital be just? As a firm believer in capitalism and the free market, Paul Tudor Jones II believes that it can be. Tudor is the founder of the Tudor Investment Corporation and the Tudor Group, which trade in the fixed-income, equity, currency and commodity markets. He thinks it is time to expand the “narrow definitions of capitalism” that threaten the underpinnings of our society and develop a new model for corporate profit that includes justness and responsibility.
Please share this article

Celgene Corporation CELG: The Next Biotech Stock to Breakout

Another day, another new all-time high for biotech stocks. The clock-like consistency with which the hottest sector on Wall Street vaults to new heights each week is almost scary.
And yet, the biotech boom rolls on. While this may end badly at some point, no sense in fretting over the inevitable end of a trend. Simply ride it while it lasts.
The next stock bulls should set their sights on is Celgene  Corporation  (NASDAQ:CELG). Unlike many of its peers who have already launched from support or well established bases, CELG stock is just now attempting to break out of a multi-month ascending triangle.

CELG stock CELG: The Next Biotech Stock to Go Boom
A closer inspection of Celgene’s stock chart reveals resistance in the $125 zone. A break above this price level will complete and confirm the setup. The series of higher pivot lows that has taken root over the past two months suggests an increasing aggression by dip buyers willing to snatch up shares at higher prices. As the apex of the triangle approaches a breakout becomes increasingly likely.

Please share this article

Could 10% Dividend Yielder Crescent Point Energy Corp (NYSE:CPG) Rebound 40% ?

Crescent Point Energy Corp (NYSE:CPG) — This Canadian oil and gas producer is a standout because of its strong balance sheet and high, stable dividend yield. It is currently the largest holding in Guggenheim Canadian Energy Income ETF (NYSE:ENY).

Last week, analysts at Raymond James Financial, Inc. (NYSE:RJF) upgraded CPG stock to “outperform” from “market perform” and increased their target price to $34 from $32. They said that Crescent Point is “one of the only high-yielding energy names with a sustainable business model in a prolonged lower oil price environment.”

Despite the massive decline in crude prices, the company posted record Q4 revenues and production. And management said it could see cost savings in the 15%-20% range this year.

CPG stock has three big potential catalysts: The strong likelihood of a rebound in oil prices, a subsequent strengthening of the Canadian dollar (now at $0.78 U.S.), and it 10.3% dividend yield, which is paid monthly and should provide support for shares if oil prices do continue to fall.

Technically, even though CPG stock is in a bear market, there are signs that a bottom may be near. Buying volume has outpaced selling volume since the low at $18.38 in mid-December. CPG stock failed to hold above its 50-day moving average in the second half of 2014. But it penetrated it in February for the first time since it topped near $44 this summer.

Buy CPG stock under $21.50 with a target of $30. If this is met, investors could see a return of 40%, plus dividends.
Please share this article

Facebook Inc (NASDAQ:FB) Stock Pop and Global X Funds (NASDAQ:SOCL) Look Bullish

Shares of Facebook Inc (NASDAQ:FB) jumped 1% this morning, showing strength amid a rather lackluster day on Wall Street. With stocks mixed ahead of this afternoon’s highly anticipated Federal Reserve announcement, the pop in FB stock was easy to spot as a potential haven for hot money.
Before following the herd into FB stock, however, be aware of it faces a brick wall of resistance, heretofore impenetrable.
More on that in a moment.

But first, it’s worth noting the Facebook stock rally was accompanied by a long awaited breakout in the social media-based Global X Funds (NASDAQ:SOCL). I first mentioned the potential for a big move in the SOCL ETF last month. It certainly took its time, but the bullish action in the fund was pretty convincing this week.
SOCL ETF FB Stock Pop Looks Enticing, But This Should Give You Pause
Further strength in SOCL should aid Facebook’s coming breakout attempt.
As the chart below shows, FB has been locked in its range-bound prison between $81.50 and $72.50 for eight months. And it’s not like the stock pays a dividend, so don’t think investors have been getting paid to wait. 
Any and all previous bids at breaching overhead resistance have flopped, so bulls have their work cut out for them if the current attempt is going to succeed.
FB stock FB Stock Pop Looks Enticing, But This Should Give You Pause
Would-be FB stock buyers seeking more confirmation that today’s rally will continue should wait until we break above the $81.50 zone before piling in.

Should the FB Breakout Come, Play It With Options

Traders looking for a cheaper alternative to buying Facebook shares could consider buying call options on the breakout. With implied volatility at the lower end of its one-year range options premiums are definitely on the cheap side these days.
Buy the Jun $77.50 calls. The current price is $6, but if you wait for a breakout (which I suggest) the price should be a bit higher.
The risk is limited to the initial debit paid, while the reward is unlimited.
Should FB finally break free of its range and embark on a new uptrend, you’ll be well-positioned to profit with these call options.
Please share this article