Breakout in Chip Stock Could Land Traders Double-Digit Profits

My son-in-law, Andrew, is a techie. An electrical engineer and electronic hobbyist, he can rattle off information about nearly every kind of semiconductor on the market. Sometimes it's more detail than I want to know -- how the chip works, what it controls and how it's best used.

Andrew knows I follow the market closely, and in a burst of enthusiasm he recently said I should look at ARM Holdings (NASDAQ: ARMH). Their chips, he commented, currently "rule the market."


The trader in me needed no further encouragement. I checked the chart and saw an extremely bullish, low-risk technical pattern. And when I analyzed the fundamentals, I found a strong outlook.
ARM Holdings has quickly become the market leader in processors for mobile devices, cutting into Intel's (NASDAQ: INTC) lead in computer and server markets. In fact, ARMH has found its way into over 95% of all mobile phones, and over a quarter of all electronic devices worldwide.

The chip is so popular because it performs well on very low power, making it ideal for battery-operated electronics, like smartphones and tablets.

In addition to being a leading chipmaker, ARM Holdings is the world's largest holder of intellectual property (IP) on semiconductors. ARMH designs and licenses its technology to tech companies, like Apple (NASDAQ: AAPL) or Microsoft (NASDAQ: MSFT). Each company pays a licensing and royalty fee for every ARMH chip used, adding up to big dollars for the company. (more)

Gold closing in on yen price record

Precious metals made strong gains on Friday, largely as a result of weak volume at the Comex futures market in New York. Thanksgiving last Thursday meant fewer participants in US futures trading on Friday, with traders taking the opportunity for a long weekend. Lack of liquidity in a market exacerbates any up or downside move; in this instance, it was the bulls’ lucky day.

Gold needs to hang above $1,740 and silver above $34 if this move is to have any lasting significance. Bulls will be encouraged by trading this morning though, with the metals holding above these levels despite more uncertainty about whether or not European finance ministers (meeting today) will agree to dispense more aid to Greece. The EURUSD, copper, the FTSE All-World equity index and US Treasury yields are down, yet gold and silver are still hanging in there – with silver in particular showing impressive resilience considering the pressure on growth assets.

Day-to-day price moves come and go, and there is often little logic to them. Last Friday was a case in point: bad news about EU budget talks coincided with a surge in the euro against the dollar, which is the opposite of what we’d normally expect. Long-term trends are however more identifiable, and one particularly interesting longer-term trend to look at right now is the Japanese yen’s performance against gold, as done in a chart courtesy of the GotGoldReport.

Gold has clearly broken out of a period of consolidation versus the yen, with Japanese politicians seemingly at last convincing the markets that they mean what they say when they state they want a much weaker yen. Priced in yen gold is now within a whisker of its all time high around ¥146,000 per ounce.

Another event that Western analysts may pay too little attention to is confirmation that Turkey has been using gold to pay for Iranian natural gas – thus neatly sidestepping US-led sanctions against Tehran. The idea of “gold as money” may be an alien concept in the modern West, but not in Asia.
The new podcast interview we are releasing today with Amphora Commodities’ John Butler – author of The Golden Revolution: How to Prepare for the Coming Global Gold Standard – may be worth listening to in this regard.

The Golden Nugget That Makes Traders Wealthy Trading AAPL, RIMM And Gold Stocks

I know most Apple enthusiasts will be rolling their eyes with my analysis and that's fine because the rest of us need people to buy our shares as we unload long positions or sell Apple short .

All joking aside, the charts below clearly show some very interesting information you cannot afford to overlook. At minimum, take a quick glance at the charts which tell the full story on their own.

The Four Stages of Stocks

Markets are cyclical in nature. There is a constant process of expansion and contraction, rally and

decline that continues as the market determines the theoretical fair value of a security. The sum

of these moves forms an unquestionable cyclical pattern consistent within all time frames. 

During a cycle a stock enters different phases of support, from irrational exuberance typically

found before its peak, to periods of widespread discontent where its price is continually

punished. However there are never distinctly good or bad stocks. 

Every "good" stock will eventually become a bad one and vice versa. There are however good

trades; trades that reward an investor who has correctly anticipated a move and positioned

himself accordingly. 

It is important to note that this works with commodities like gold and silver which are trading at

a VERY interesting point in their life cycle. Looking at various time frames in GLD and SLV

you can see this.  (more)

Rosen – This Move In Gold & Silver Is Going To Shock People

from King World News
KWN has received tremendous interest in 54-year market veteran and analyst Ron Rosen’s charts and comments which were published exclusively on King World News. We followed up with Rosen to get his take on where gold and silver are headed longer-term, and Rosen did not disappoint. He gave an absolutely extraordinary interview.
Below is a chart and comments from 54-year market veteran and analyst Ron Rosen:
Continue Reading at KingWorldNews.com…

Comcast Corporation (NASDAQ: CMCSK)

Comcast Corporation provides entertainment, information, and communications products and services in the United States and internationally. The company’s Cable Communications segment offers video, high-speed Internet, and voice services to residential and business customers. Its Cable Networks segment consists of national cable entertainment, national cable news and information, national cable sports, regional sports and news, and international cable networks. Its Filmed Entertainment segment consists of the operations of Universal Pictures, including Focus Features, which produces, acquires, markets, and distributes filmed entertainment worldwide in various media formats for theatrical, home entertainment, television, and other distribution platforms. This segment also develops, produces, and licenses stage plays. The company’s Theme Parks segment comprises theme parks; studios; and a dining, retail, and entertainment complex. The company offers its services directly to residential and business customers through call centers; door-to-door selling; direct mail, television, Internet, and local media advertising; and telemarketing and retail outlets.

Comcast’s stock is potentially forming a Head and Shoulders pattern. Please take a look at the 1-year chart of CMCSK (Comcast Corporation) below with my added notations:

CMCSK has been on a nonstop rally since last year. Over the last (3) months though, the stock has created a very important level at $34 (navy), which would also be the “neckline” support for CMCSK’s possible H&S pattern. Above the neckline you will notice the H&S pattern itself (red). Confirmation of the H&S would occur if the stock broke below its $34 support. If CMCSK breaks that level, the stock should move lower from there. A move above the $36 area would probably negate the potential H&S pattern.

Keep in mind that simple is usually better. Had I never pointed out this H&S pattern, one would still think this stock is moving lower simply if it broke below the $34 support level. In short, whether you noticed the pattern or not, the trade would still be the same: On the break below the key $34 level.

Juniors to hit a Fiscal… Wall?? Brent Cook

Garbage Piles Up in Spain as Unpaid Municipal Bills Mount; Green Shoot of the Day: Cement Consumption Falls 34%

by Mike Shedlock
MISH’S Global Economic Trend Analysis
As Spain attempts austerity by cutting back payments to regions, those regions run out of funds to pay bills.
For an interesting case-in-point, please consider (via Google translate from El Economista) Municipalities Owed €2,000 Million, Companies Refuse Collection and Cleaning

Defaults on local councils put back on the ropes to urban sanitation companies. No respite worth. If the final plan provider payment partially interrupted the problem, the situation again becomes serious. “Since the beginning of the year delinquencies has skyrocketed. In just eight months to August, the accumulated debt of the sessions with cleaning companies was around 1,680 million.

Continue Reading at GlobalEconomicAnalysis.Blogspot.com…