Builders FirstSource, Inc. (NasdaqGS: BLDR)

Builders FirstSource, Inc. engages in the manufacture and supply of structural and related building products for residential new construction primarily in the southern and eastern United States. The company offers prefabricated components, including floor trusses, roof trusses, wall panels, stairs, and engineered wood; and window and door products, such as aluminum and vinyl windows, and pre-hung interior and exterior doors, as well as assembles and distributes interior and exterior door units. It also provides lumber and lumber sheet products comprising dimensional lumber, plywood, and oriented strand board products; millwork products, including interior trim, exterior trim, columns, and posts, as well as custom exterior featured products; and other building products, such as cabinets, gypsum, hardware, composite materials, roofing, and insulation. The company was formerly known as BSL Holdings, Inc. and changed its name to Builders FirstSource, Inc. in October 1999. Builders FirstSource, Inc. was founded in 1998 and is based in Dallas, Texas.

To review Builder's stock, please take a look at the 1-year chart of BLDR (Builders Firstsource, Inc.) below with my added notations

BLDR had been trading within a sideways Rectangle for about (3) months. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For BLDR, the Rectangle pattern formed a $4.50 resistance (maroon) and a $3.50 support (blue). The stock broke out of that Rectangle at the end of last month and now seems to be coming back to the old breakout resistance.

The Tale of the Tape: BLDR formed a very common chart pattern know as a Rectangle. Last month the stock broke through the resistance, headed higher, and now seems to be coming back to the previous $4.50 level. A long trade could be made at $4.50 if the stock approaches that level.

This Major Fed Move Is About To Create An Explosion In Gold

from KingWorldNews:

King World News is continuing to receive extraordinary levels of interest in what has turned into a series of Michael Pento pieces. Today Pento reports more stunning news, “Last week the ECB reported that overnight deposits parked at the central bank plunged by the most on record, or €484 billion in just one session. It now seems my theory that banks would deploy their reserves was proven correct in a matter of days.”

Pento also predicted, “I believe the cyclical period of deflation that I warned about several months ago is now close to an end.” Pento is now calling for another significant move, and he noted, “If the Fed does indeed go down that road, I would expect to see U.S money supply growth increase significantly. This will cause gold and commodity prices to soar.”

Today Michael Pento, of Pento Portfolio Strategies, writes exclusively for King World News to put global readers ahead of the curve, once again, on what is unfolding as a result of the major unprecedented moves by central banks. Here is Pento’s piece: “Could it be that world governments and central banks are now taking drastic measures to re-inflate their economies because they don’t believe their own economic statistics? For example, China reported that GDP growth came in at 7.6% last quarter. That’s slower growth, but still not so bad.”

Egon von Greyerz continues @ KingWorldNews.com

This Is The China Chart To Watch

Decision time for China. The Shanghai Composite is testing long-term trendline support that goes back to the mid-1990s. Resistance up top is a trendline down from the euphoric highs of 2007. So we’re essentially at the apex of two converging meaningful trendlines.

This is a logarithmic scale weekly line chart of the benchmark Shanghai Composite:

The current prices are near the 2001 highs, right before the Shanghai Composite got cut in half. There is memory at this price. That former resistance adds additional support at these levels.

The consequences of a breakdown below long-term support would really be damaging to this chart, and paints a poor picture for China. But I think there is an overwhelming amount of support where the higher probability move is a bounce. And a breakout above an almost 5-year down trendline could be explosive.

So as you can see, there’s a lot going on right now in this China chart. And I think it’s important to at least stay for the outcome. Regardless of what asset classes you own, this is probably going to have an impact.

This Packaging Giant is on the Threshold of a Technical Breakout

Behind every great food product is a well-engineered package.

Packaging is essential to keep food fresh, ensure it arrives at your local store in one piece, and to communicate the brand image that makes you want to buy the item.

It's also a multi-billion dollar industry that's expected to increase revenue 24% by 2014.

Benefiting from this growth is one of the world's largest manufacturers of folding cartons. This company has a strong technical outlook, solid fundamentals and outstanding valuation... and its shares have 38% upside potential.

Graphic Packaging Holding Company (NYSE: GPK) -- which operates facilities across the Americas, Europe, Asia Pacific and Brazil -- offers paperboard and flexible packaging, primarily for the food and beverage industries.

In fact, it creates packaging for some of the world's most recognized household brands, including Coco-Cola (NYSE: KO), Pepsi (NYSE: PEP), General Mills (NYSE: GIS) and Kraft (NYSE: KFT).

Graphic Packaging focuses on providing low-cost, high-tech packaging solutions, especially for China, one of the world's largest beer consuming nations. GPK expects its beer packaging to grow over 5% annually in the coming years. The Chinese are also showing an increasing demand for dairy products, like milk and yogurt, which require innovative packaging solutions. (more)

US Weekly Economic Calendar

time (et)	report	period	Actual	forecast	previous
MONDAY, JULY 16
8:30 am	Retail sales	June		0.2%	-0.2%
8:30 am	Retail sales ex-autos	June		0.0%	-0.4%
8:30 am	Empire state index	July		5.0	2.3
10 am	Inventories	May		--	0.4%
TUESDAY, JULY 17
8:30 am	Consumer price index	June		0.0%	-0.3%
8:30 am	Core CPI	June		0.2%	0.2%
9:15 am	Industrial production	June		0.2%	-0.1%
10 am	Home builders' index	July		30	29
10 AM	Bernanke testimony
WEDNESDAY, JULY 18
8:30 am	Housing starts	June		751,000	708,000
10 am	Bernanke testimony
2 pm	Beige Book
THURSDAY, JULY 19
8:30 am	Weekly jobless claims	7-14		368,000	350,000
10 am	Existing home sales	June		4.65 mln	4.55 mln
10 am	Leading indicators	June		-0.1%	0.3%
10 am	Philly Fed	July		-7.0	-16.6
FRIDAY, JULY 20
	None scheduled

Greyerz – Gold to Hit $3,500 – $5,000 in 12 to 18 Months

from KingWorldNews:

Today Egon von Greyerz told King World News, “The credit bubble we’ve had, for at least 40 years, is going to accelerate dramatically, and the failures in the system will continue.” Egon von Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “I see gold reaching $3,500 to $5,000 in the next 12 to 18 months.”

Here is what Greyerz had to say about the ongoing financial crisis and where we are headed: “There is a fire in almost every country in Europe. The US is going to catch fire also. There will be a catalyst coming soon, probably some concerted action of QE or money printing between the Fed, IMF and the ECB. That will happen as a result of the economies, worldwide, collapsing.”

“Just look at the unemployment. We’re looking at 25% unemployment in many countries. The US is at 23% (unemployment) if you count it correctly. Youth unemployment is 50% in many countries. This is a disaster for the world and the social side of this will be terrible.

Egon von Greyerz continues @ KingWorldNews.com

George Soros' Best Investment Advice

Today we have a guest post from Williams Equity Analysis who have graciously allowed us to post their piece in its entirety from Seeking Alpha: The Best Investment Advice George Soros Ever Gave. Here it is:

"Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend and step off before it is discredited." ~ George Soros

Think about that statement for a minute. For everyone who is in the so-called bear camp, and thinks the current "recovery" belongs in quotation marks, this is an exceptionally meaningful quote.

Of course, everyone who has been bearish on the markets since 2009 has largely lost money, and been quite aggravated in the process. Had trillions in stimulus and quantitative easing not been injected into the economy (the big banks for the latter), our economy would have simply restructured and our markets would have bottomed at values far lower than they did. Bearish market participants have been investing with the philosophy that this will still happen. (more)