Energy Transfer Equity LP (NYSE: ETE)

Energy Transfer Equity, L.P., through its subsidiaries, provides diversified energy-related services in the Unites States. The company sells natural gas to electric utilities, independent power plants, local distribution companies, industrial end-users, and other marketing companies. It owns and operates approximately 7,800 miles of natural gas transportation pipelines and 3 natural gas storage facilities located in the state of Texas; and approximately 12,800 miles of interstate natural gas pipeline.
Take a look at the 1-year chart of Energy Transfer (NYSE: ETE) below with my added notations:

ETE has been trending higher for the last 12 months, and since the beginning of 2014 the stock has formed a clear trendline of support (green). However, over the last 2 months the stock had formed at 52-week high resistance at $60 (blue). At some point ETE was going to have to break one of those two levels, and yesterday the stock broke to a new high.

The Tale of the Tape: ETE broke though its $60 resistance, which was also a new 52-week high. A long trade could be made on a pullback down to the $60 level with a stop placed below that level. A break back below the $60 level should lead to a fall down to the trendline support.
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Bull / Bear Ratio in Stocks

As FBN notes,

Sentiment has reached an extreme as  Bears according to Investors Intelligence fell to the lowest level since 1987. The markets persistent grind higher is a constant pain for any bear. The few that remain are the classic perma-bears and adjusting for them we are near rock bottom for bears. The history of Sentiment reminds us that it’s more dangerous to have an evaporation of bears compared to a plethora of bulls.

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How to Profit from the California Crisis

Back in antiquity and halfway around the world, the superpowers of the ancient world consistently fell to one foe.
The Tang Dynasty ruled from 618 A.D. to 907 A.D., during what is widely considered a Golden Age in Chinese history.
But the beginning of the end came in 873 A.D., when an illegal salt trader organized starving peasants and started a decade-long war following a disaster. By 880, he had seized the capital and throne.
By studying stalagmites, a joint Chinese and American team found a significant decrease in deposits correlated to the beginning of the end of a Golden Age in Chinese history. (more)

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What’s in Store for Natural Gas and Crude Oil Prices

To hear some analysts tell it, geopolitics and the weather are exogenous events when it comes to energy prices.
That is, somehow both natural gas and crude oil prices would operate quite “rationally” if it weren’t for either of them.
According to these guys, supply and demand is what drives the market, and from time to time these “outside elements” only muddle things up.
Well, I hate to break it to them, but there hasn’t been a “normal” market for some time now. (more)

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20 Years Of Charts: Today’s Bond Fund Play

 

The latest upward revision in second quarter GDP growth tips the balance even more toward a hike in the Federal Funds rate sooner than later. While there’s some debate whether the Federal Reserve starts its march toward rate normalization in the first or second quarter of 2015, the time to adapt your fixed income portfolio is now. As Anthony Valeri, Investment Strategist at LPL Financial recently pointed out, the bond market has a habit of sending yields up about four to six months ahead of the first Fed Funds hike.

Some history in a few charts, starting with the 1994 rate hike. Coming out of the early 1990s recession the Federal Reserve pushed its Federal Funds rate to around 3% where it stayed through 1993.

In early 1994 the Federal Reserve began to ratchet up the Federal Funds rate, but as seen in this chart, the 10-year Treasury had already had a move up of more than 50 basis points before the Federal Reserve kicked into tightening mode. (more)

Strong Dollar finally catches up to Gold

Geopolitical events had been supporting gold of late but those can only carry the metal so far when several fundamental factors were acting as a strong headwind against a further rise in its price.

We have mentioned falling inflationary fears as evidenced by the TIPS spread, falling commodity prices as evidenced by the GSCI and a stronger Dollar, not to mention a stock market than continues to make all time highs. (more)

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Aegerion Pharmaceuticals, Inc. (NASDAQ: AEGR)

Aegerion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with debilitating rare diseases in the United States. The company’s products include JUXTAPID (lomitapide) and LOJUXTA (lomitapide) hard capsules, an adjunct to a low-fat diet and other lipid-lowering treatments in patients with homozygous familial hypercholesterolemia. It also has the right to use lomitapide in the field of monotherapy or in combination with other dyslipidemic therapies for treatment of patients with other severe forms of hypercholesterolemia. The company distributes its products directly to patients and other purchasers through a specialty pharmacy.
Take a look at the 1-year chart of Aegerion (NASDAQ: AEGR) below with my added notations:

AEGR has trended consistently lower for the entire last year. Over the last four months the stock seems to be forming an inverse head and shoulders pattern (gray). I have noted the head (H) and the shoulders (s) to make the pattern more visible. AEGR’s neckline resistance is at the $35 level (blue) and the stock would confirm its H&S pattern if it breaks up through that resistance.
Lastly, keep in mind that simple is usually better. Had I never pointed out this inverse H&S pattern, one would still think this stock is moving higher simply if it breaks through the $35 resistance. In short, whether you noticed the pattern or not, the trade would still be the same: On the break above the key $35 level.

The Tale of the Tape: AEGR seems to be forming an inverse head & shoulders pattern. A long trade could be entered on a break above the $35 level with a stop placed under that level. A break below the common $30 support most likely means much lower prices, thus the opportunity to enter a short trade.
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