Saturday, April 4, 2015

One of the Greatest Danger Signals is Flashing Red

from King World News
Today one of the greatest danger signals is still flashing RED!
DANGER – From Investors Intelligence:
“The spread between the bulls and bears was 40.3% … still in danger territory. Differences over 30% are a worry and above 40% signal major caution. (see multi-year chart below)
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Mining Picks: Which Gold Mining Stocks Are on Mickey Fulp’s Mind?

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VCA Inc. operates as an animal healthcare company in the United States and Canada. It operates through two segments, Animal Hospital and Laboratory. The Animal Hospital segment offers general medical and surgical services, as well as specialized treatments comprising advanced diagnostic services, internal medicine, oncology, neurology, endocrinology, ophthalmology, dermatology, and cardiology for companion animals; and sells related retail and pharmaceutical products. The Laboratory segment offers testing and consulting services in the areas of chemistry, pathology, endocrinology, serology, hematology, and microbiology, as well as conducts tests specific to particular diseases. As of December 31, 2014, it operated or managed 643 animal hospitals and 59 veterinary diagnostic laboratories. The company also provides communication and marketing solutions to veterinary practices, pharmaceutical manufacturers, and the pet owning community.
Take a look at the 1-year chart of VCA (Nasdaq: WOOF) below with added notations:
1-year chart of VCA (Nasdaq: WOOF)
WOOF has been trading sideways for the last 2 months. Over that period of time the stock has formed a resistance area around $55 (red). In addition, the stock has also created an area of support at $52 (green). At some point the stock will have to break out of its current consolidation.

The Tale of the Tape: WOOF has levels of support at $52 and resistance at $55. The possible long positions on the stock would be either on a pullback to $52, or on a breakout above $55. The ideal short opportunity would be on a break below $52.
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The Chain — Kyle Bass

To launch our exciting new series The Chain on Real Vision TV, Raoul Pal travels to the Dallas to speak with Kyle Bass at the Barefoot Economic Summit. Founder and CIO of Hayman Capital, Kyle Bass gained notoriety for calling the sub-prime mortgage crisis. In this fascinating conversation, Kyle discusses event-driven vs. macro analysis, his approach to risk and portfolio sizing, and his motivational forces – from negative reinforcement, to freediving, to the epiphany moment. For the next interview of the series, Kyle Bass will interview one of his investment heroes – and The Chain continues on.
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Opportunities in Crude Oil Spreads

Cushing, Oklahoma is a major trading hub for crude oil and boasts the largest oil storage facility in the world. It is a famous price settlement point for West Texas Intermediate Crude grade on the New York Mercantile Exchange, which is part of the CME Group. The city was established after the Land Rush of 1889. An oil boom began in 1912 that led to the city's development as a refining center.   There has been a lot of controversy regarding the facility's capacity.  Many in the press are reporting that this facility is nearing capacity, which we believe to be true.  Let's examine why this phenomenon is happening:
Below is a spread chart between June 16 Crude and June 15 Crude.  When spread prices are declining there is no economic incentive to store crude.  However, when this spread is increasing, especially now at 8.56, there is a powerful incentive to store crude at today's prices and selling futures against the stored crude, thus locking in a virtually guaranteed profit.  This spread was at even money, or negative for three and a half years.  There was no incentive to store crude.  Now the exact opposite is true.   Keep an eye on the 5.50 support level.  If this spread starts to collapse so will the amount of storage at Cushing, Oklahoma.
Weekly Crude Oil Futures - Continuation

Chart provided by QST
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Russel Metals Inc. (TSX─RUS) offers a high dividend yield while you wait for its rebound

Russel operates in the cyclical manufacturing sector. Current weakness in its share price presents a buying opportunity. While you wait for this cyclical rebound, Russel’s yield makes it one of the top Canadian dividend stocks.

Russel Metals Inc. (TSX─RUS) is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy products and steel distributors, under various names such as Russel Metals, A.J. Forsyth and Acier Leroux.

The company’s network of metals service centers carries a broad line of metal products in a wide range of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel and aluminum. The energy products operations distribute oil country tubular goods, line pipe, tubes, valves and fittings. And the steel distributors sell steel in large volumes to other steel service centers and large equipment manufacturers mainly on an “as is” basis.

We’ve included Russel Metals in our Income Trust Guide because it helps to round out our income selections and other common stocks we recommend in Money Reporter by giving you exposure to Canadian manufacturing companies stocks. Keep in mind, though, that companies that operate in this sector tend to be cyclical in nature. That’s true of Russel Metals.

The company, for example, was hard hit in the recession of 2008 to 2009. Consequently, in 2009 it posted a loss and cut its dividend per share to $1.00 from $1.80. But it was able to maintain a dividend through the recession, and it’s paid a dividend in each year since 2000. Indeed, one of the company’s goals is to lead manufacturing stocks with the sector’s highest dividend yield.

Since the dark days of 2009, Russel’s revenues, earnings and dividend have all rebounded. Revenues have increased 96 per cent since then to $3.9 billion in 2014. Earnings per share have increased from a loss of $1.54 in 2009 to a profit of $2.01 in 2014. And the dividend per share has risen 52 per cent over this time period to $1.52.
The deterioration in the price of oil has led Russel’s energy customers to announce reductions in their projects and capital expenditures. Consequently, the shares have declined 36 per cent from the highs they achieved last summer. That makes them attractive, in our view, for a cyclical rebound when conditions improve.
The current annual dividend of $1.52 a share yields over six per cent. Russel Metals is an attractive buy for growth and income if you can tolerate its cyclical nature.
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How To Manage Your Personal Finance with Debt Relief

Every individual earns to fulfill his requirements. The problem arises when the expenditure exceeds over the income and you require obtaining debts to meet the both ends. The debtors can obtain money by mortgaging their assets and sometimes even their future income. Here are some ways through which you can manage your personal finance.
Avoid Huge Debts: It is always advised not to take huge debts as it will hamper the status of your personal finance. It is a very simple process where you can limit your expenses up to your income only. You should never spend more money than you are making. You can also cancel some of your credit cards to avoid huge debts. You can keep a single credit card to avoid your extravagant expenses. Just ensure that you use that single credit card only for the emergencies. These are preventive measures that will help you to manage your own finances. You can also create savings accounts with the money that remained after themonthly expenditure. If you are under debt, you should pay your creditors. And if you are not into debts, you can save that money for your future emergencies.
Stop Falling Into Debts: If you are not using the credit cards, you are not owing to the credit card companies. If you want to avoid owing massive amounts to your creditors, you should immediately reduce your expenses. Cutting up the credit cards will help you to decrease the total amount of your debt. Even if you look out for the settlement companies, it will indirectly add upon your debts.
Make Your Expenses Down To 60 to 70 Percent: You should jot down the total expenses via your credit cards and the rates of interest offered by them. You will be wondered to observe that there may be differences of 10 % of the interest rates within different credit card companies. You should move forward by taking the lowest interest rates. You can consolidate the entire amount into a single figure. By this time, your expenses should go down by 60% to 70%.
Decrease Interest Expenses: Now, as you have managed your finance in a better way, you can now go for the national debt relief programs. 60 % of your debts can legally get eliminated with the help of this process. The outstanding overdue of the credit card companies can be waived off at this stage.
Stay on Track: It may seem difficult to remain under the tight budget. But if you can maintain the changed spending habit, it will help you to reach your financial goals very easily. This will also help in paying your bills within specific time period and help to improve your credit score. The financial budget for your personal purpose will help you to enjoy your financial freedom in the long run.
Overcome Your Debts: If you owe less than ten thousand dollars, you are not required to consult the debt relief companies. But if you owe a slight debt to your credit card company, you should consult the debt relief companies. Managing the credit card overdue can become tiring and frustrating sometimes if you start on your own.
The professional experts and the credit counselors can help you with valuable advice during your time of need. You should always remember that it is imperative to get out of your debt as soon as possible as you never know about the future of the economy.
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