The recent rally in gold has been short lived as the lustrous yellow
metal has pulled back below US$1,200 per ounce in early March of this
year. This can be attributed to growing pressure from a resurgent U.S.
dollar and weak oil prices.
However, despite these headwinds there are signs that gold will
rebound, making now the time to invest in these three gold miners.
Now what?
For 2014 Agnico Eagle Mines Ltd. (TSX:AEM)(NYSE:AEM)
delivered some solid operational results. These included record annual
production of 1.4 million ounces of gold and a hefty 18% year-over-year
increase in its gold reserves to 20 million ounces. (more)
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Wednesday, April 1, 2015
3 Short Squeezes Just Waiting to Burst (ACN, DRI, JAH)
Short sellers came back to life in March, as bearish bets on the S&P 500’s companies increased by nearly 5%.
The increase in short interest activity is the result of an increase in volatility — unsurprisingly, some investors are getting more nervous that the recent highs are unsustainable. Given some of the short-term market indications, we can't disagree, but remember: Today’s increases in short interest represent tomorrow’s short squeezes.
A short squeeze occurs when a highly shorted stock begins to move higher, putting pressure on the short sellers as they still have a liability to repay the shares they've borrowed. As would be expected, short interest increases when the market declines, setting up even more potential to jump into positions before the shorts start feeling the heat.
With that in mind, we are always scanning for bullish trading opportunities by finding the companies that have excessive shorting activity, despite retaining strong technical and relative strength leadership. (more)
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The increase in short interest activity is the result of an increase in volatility — unsurprisingly, some investors are getting more nervous that the recent highs are unsustainable. Given some of the short-term market indications, we can't disagree, but remember: Today’s increases in short interest represent tomorrow’s short squeezes.
A short squeeze occurs when a highly shorted stock begins to move higher, putting pressure on the short sellers as they still have a liability to repay the shares they've borrowed. As would be expected, short interest increases when the market declines, setting up even more potential to jump into positions before the shorts start feeling the heat.
With that in mind, we are always scanning for bullish trading opportunities by finding the companies that have excessive shorting activity, despite retaining strong technical and relative strength leadership. (more)
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Crude Oil, Transports & Google $GOOG
In this interview we discuss the importance of risk management and how to include opportunity cost into that calculation. I think the fact that Transports have yet to break out is a good example of this. We continued by pointing out the key risk levels in Crude Oil and a potential breakout in Google that we hope will come soon. We want to be buyers of an upside resolution to this year plus-long consolidation in $GOOG shares.
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Nabors Industries Ltd. (NYSE: NBR)
Nabors Industries Ltd., together with its subsidiaries, provides
drilling and rig services, and completion and production services. The
company offers equipment manufacturing, rig instrumentation,
optimization software, and directional drilling services. It also
provides completion, life-of-well maintenance, and plugging and
abandonment of a well. In addition, the company markets approximately
466 land drilling rigs for oil and gas land-based drilling operations in
the United States, Canada, and approximately 20 other countries
worldwide; approximately 445 rigs for land well-servicing and workover
services in the United States; 98 rigs for land well-servicing and
workover services in Canada; 42 rigs for offshore drilling operations in
the United States and internationally; and 7 jackup units and
components of trucks and fluid hauling vehicles.
Take a look at the 1-year chart of Nabors (NYSE: NBR) below with my added notations:
Starting in July, NBR declined steadily into December, and from there the stock started a 4-month, sideways move. During that sideways move, NBR has created an obvious resistance at $14 (blue). A break above that $14 level should mean higher prices for the stock.
The Tale of the Tape: NBR has a key level of resistance at $14. 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 $14.
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Take a look at the 1-year chart of Nabors (NYSE: NBR) below with my added notations:
Starting in July, NBR declined steadily into December, and from there the stock started a 4-month, sideways move. During that sideways move, NBR has created an obvious resistance at $14 (blue). A break above that $14 level should mean higher prices for the stock.
The Tale of the Tape: NBR has a key level of resistance at $14. 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 $14.
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